Wednesday, July 31, 2013

Wednesday roundup (07-31-13)

Eurozone jobless data ‘horrendous’: official [Agence France Presse and Reuters via] (The Gulf Times) Euro zone unemployment stuck at record high even as economy improves (CNBC) First fall in euro zone unemployment points to muted recovery (Reuters)

Euro-Area Debt-to-GDP Ratio Still Rising (The Big Picture blog)

When a Bank Collapse Sparks the Next Crisis, Blame European Leaders (The Wall Street Journal blogs)

Germany’s Retail Sales Unexpectedly Declined in June (Bloomberg)

France 'on course' to break public deficit limit (The Local)

The Greek Bailout Isn’t Working (The New York Times blogs) Greek bailout has 11 billion euro funding gap (CNNMoney) Eurozone faces £9.6bn hole in Greek finances, warns IMF: The eurozone must plug a £9.6bn black hole in Greek finances and move more quickly to write-off a "substantial" chunk of the country's £282bn debt, the International Monetary Fund has warned. (The Telegraph) IMF Staff Says Greece Needs More Money, Potential Debt Relief (Bloomberg)

Wall Street's Weak Arguments Against a New Glass-Steagall (U.S. News & World Report blogs)

An Unhappy Birthday For Dodd-Frank As Momentum Builds For The Next Meltdown [First of an 11-part series "on the failed promises of the Dodd-Frank financial reform package and the continued, dangerous imbalances in our financial system."] (Forbes) [2] An Unhappy Birthday For Dodd-Frank: The 'Too Big To Fail' Problem Gets Bigger (Forbes) [3] Set Up To Fail: Dodd-Frank Leaves Bank Regulators Overwhelmed, Underfunded (Forbes) [4] Washington Can't Defuse The Ticking Time Bombs Fannie Mae And Freddie Mac (Forbes) [5] To Police Banks, Obama Spins Revolving Door To Bring In More Of Wall Street's Own (Forbes) [6] How Lobbyists And GOP Are Defusing Derivatives Regulation (Forbes) [7] Wall Street Gamblers' Insurance, Courtesy Of Uncle Sam (Forbes) [8] Can Fed Withstand Pressure Of Banks To Weaken New Capital Requirements? (Forbes) [9] Why DOJ Deemed Bank Execs Too Big To Jail (Forbes) [10] Political Will Falters On Fixing Credit Ratings Agencies (Forbes) [11] Dodd-Frank And The Next Financial Meltdown (Forbes)

Growing copper theft 'like an epidemic' sweeping US (CNBC)

Air France says plans to cut 2,500 jobs next year [confirming the union claim posted here yesterday] (Agence France Presse)

Center Partners plans 600 layoffs by end of year (The Associated Press)

The Monsanto Menace: The feds see no evil as a belligerent strongman seeks control of America's food supply (The Village Voice) How Monsanto Controls the Government: Chris Parker: The Daily Ticker's Aaron Task and Henry Blodget interview journalist Chris Parker about his Village Voice article "The Monsanto Menace." (Yahoo!'s The Daily Ticker)



Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday, July 30, 2013

Tuesday roundup (07-30-13)

Euro Jobless Rate Seen at Record Even as Recession Ends (Bloomberg)

IMF approves $2.3 billion aid for Greece (Reuters)

Spain Remains in Recession in Q2 but Only Just (The Associated Press)

U.S. Recession Began in 2012, ECRI's Achuthan Says: Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, talks about the U.S. economy. Achuthan speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." (Bloomberg) ACHUTHAN: The Recession Began Last Year (The Business Insider) U.S. Economy Looking More Japanese (The Wall Street Journal blogs)



Monetarists see recovery danger from 'Summers Fed': Monetarist economists across the world have reacted with alarm to the emergence of Larry Summers as front runner to take over the US Federal Reserve, fearing that he will push for withdrawal of monetary stimulus and endanger America’s fragile recovery. (The Telegraph)

Sorry, Secretary Lew, But Soaring Debt Is A Real Crisis — Not A 'False' One [Editorial] (Investor's Business Daily) And you thought $16.7trillion was bad... Leading economist says U.S. national debt is actually $86.8TRILLION (The Daily Mail)

American Dream Slipping as Homeownership at 18-Year Low (Bloomberg)

Air France could cut 3,000 more jobs: union (Reuters)

Entergy to cut [800] jobs, mulls future of wholesale nuclear (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Monday, July 29, 2013

Monday roundup (07-29-13)

ECB will soon need to help France: Juergen Stark (CNBC) „Die Euro-Krise wird sich im Spätherbst zuspitzen“: Vor einem Jahr kündigte EZB-Chef Draghi an, alles zu tun, um den Euro zu retten. Der frühere EZB-Chefvolkswirt Jürgen Stark hält dies für fatal. Er fürchtet, dass die EZB bald Frankreich mit Anleihekäufen stützen muss. (Handelsblatt)

Is the net closing in on 'Houdini' Berlusconi? (CNBC) [This, in turn, raises the question:] Will Italy's Prime Minister Be Around Much Longer? (U. S. News & World Report blogs)

China to audit local authorities and state enterprises over debt fears: Nationwide assessment of borrowing underlines concern that public bodies are close to collapse (The Guardian)

Is Another Recession Looming [for the US]? (Forbes)

Whitney: High Interest Rates Will “Trigger a Real Downsizing” for Cities: The Daily Ticker's Aaron Task asks Meredith Whitney how Detroit's bankruptcy will impact the muni bond market. (Yahoo!'s The Daily Ticker)



     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Sunday, July 28, 2013

Sunday roundup (07-28-13)

China ["urgently"] orders audit of government debt: Agency (Agence France Presse) China orders nationwide government debt audit (Reuters)

80 percent of U.S. adults face near-poverty, unemployment, survey finds (The Associated Press)

CNBC Fed poll: 50% say Obama should pick Yellen; 2.5% say he should pick Summers (The Washington Post blogs)

Will Pensions Prompt More City Bankruptcies?: Bloomberg Government analyst Nela Richardson examines the pension commitments of U.S. municipalities and whether they will cause situations similar to Detroit's bankruptcy. She speaks on Bloomberg Television's "Market Makers." [July 22] (Bloomberg)



     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Saturday, July 27, 2013

Saturday roundup (07-27-13)

Today, Detroit. Tomorrow, Hometown, USA: How Detroit’s bankruptcy filing will have national repercussions (Marketwatch)

Unofficial Problem Bank list declines to 729 Institutions (Calculated Risk blog)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Friday, July 26, 2013

Friday roundup (07-26-13)

Banks shiver as UBS swallows $885 million U.S. fine (Reuters)

Euro bailout fund chief warns Ireland not to ease up on austerity plans (Reuters) [One writer from Ireland begs to differ, however:] Time to tell Germans: enough of all this austerity nonsense (The Irish Independent)

Americans’ frustration with gridlocked Washington grows (McClatchy Newspapers)

General Electric to cut 600 jobs in France - union (Reuters)

Scientists discover what’s killing the bees and it’s worse than you thought (Quartz)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Thursday, July 25, 2013

Thursday roundup (07-25-13)

IMF fears Fed tapering could 'reignite' euro debt crisis: The tapering of stimulus by the US Federal Reserve risks reigniting the eurozone debt crisis and pushing the weakest countries into a "debt-deflation spiral", the International Monetary Fund has warned. (The Telegraph)

ECB should cut rates, launch new cheap loans to banks to help growth, IMF says (Reuters)

Greece clears last hurdle to unlock EU-IMF bailout funds (Reuters)

British Recovery Picks Up, But Still Remains Fragile (The New York Times)

Japan Economist Makes Rare Call to Tackle Debt (The Wall Street Journal blogs)

Scientists warn on Arctic ‘economic time bomb’ [The Financial Times via] (CNBC)

Oil Sands: 4,000 Environmental Infractions, 40 Punishments [in Canada] (The Huffington Post)

Is Long-Term Deflation US Economy’s Inevitable Danger? (The Desert Sun of Palm Springs, California blogs)

Mortgage delinquencies take a sharp turn up (CNBC)

Banks Run The Economy?: Are Banks Becoming Oil Companies, Commodity Distribution Companies, Airport Operators etc? (Cliff Küle's Notes blog)

Whitney Says Wall Street's Biggest Layoffs Ahead: Meredith Whitney, chief executive officer of Meredith Whitney Advisory Group, talks about Detroit's decision to file for bankruptcy, the municipal bond market and the outlook for financials. Whitney speaks with Tom Keene, Sara Eisen and Scarlet Fu on Bloomberg Television's "Surveillance." Ralph Schlosstein, chief executive officer of Evercore Partners Inc., also speaks. (Bloomberg)



Detroit has lots of company in long-term-debt quagmire: Chicago recently saw its credit rating downgraded because of a $19 billion unfunded pension liability that Moody’s ratings service puts closer to $36 billion, and Los Angeles — by some estimates — could be facing a liability of more than $30 billion. (The Detroit Free Press)

Labor’s Only Hope Is Detroit Bailout or New Taxes (Bloomberg) GOP lawmakers push measures to prevent federal bailout for Detroit bankruptcy (The Detroit Free Press)

History offers few happy endings for Detroit to follow (Reuters)

Chicago schools budget seen sinking deeper in the red despite cuts (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 07-25-13)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Jobless claims rose by 7,000 to 343,000 in the week ended July 20 from a revised 336,000 the prior period, Labor Department figures showed today in Washington." (Bloomberg)

SEE LAST WEEK'S POST HERE.

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Wednesday, July 24, 2013

Wednesday roundup (07-24-13)

Caterpillar Just Downgraded The Whole World (The Business Insider)

China Manufacturing Weakens Further as Slowdown Deepens (The Business Insider)

Right now, Larry Summers is the front-runner for Fed chair (The Washington Post blogs) Sheila Bair Endorses Janet Yellen For Bernanke's Federal Reserve Job, But Wall Street Whispering Campaign Could See Top Job Going To Another Candidate (International Business Times)

Analyst Meredith Whitney warns of ‘staggering’ aftershocks from Detroit bankruptcy (The Globe and Mail of Toronto) Meredith Whitney: 'Detroit Will Start A Wave of Municipal Bankruptcies' (The Business Insider) Detroit not a one-off, aftershocks will be staggering: Whitney (CNBC) 'Neighbor vs. neighbor' in US cities, Whitney says (CNBC)



A New Glass-Steagall Act by Simon Johnson (Peterson Institute for International Economics)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday, July 23, 2013

Tuesday roundup (07-23-13)

Debt-crippled Dutch wake up to housing crash (CNBC)

Majority of Americans Say U.S. Still in Recession (The Wall Street Journal blogs)

Boehner Signals Clash With White House on U.S. Debt Limit (Bloomberg)

Could door-to-door Postal Service delivery end soon? (USAToday)

Just how generous are Detroit's pensions? (CNNMoney)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Monday, July 22, 2013

Monday roundup (07-22-13)

Euro-Area Government Debt Increases to 92.2% of GDP (Bloomberg) Europe's crisis states should fight back with a 'debtors' cartel': Public debt levels are rocketing in almost every country of the eurozone periphery. Debt ratios are already crossing the point of no return in Portugal and Italy, and is nearing the danger zone in Ireland. (The Telegraph) Eurozone debt hits record high - economy (Euronews)



Unemployment set to rise further in euro zone's hardest hit: Reuters Poll (Reuters)

Euro Zone Stagnating, So Why No Deflation? (The Wall Street Journal blogs)

France in a 'worrying' situation: Moscovici (CNBC)

How debt-laden French cities avoid Detroit’s fate: sue the banks (Reuters blogs)

[In the US] Detroit not alone under mountain of long-term debt (The Detroit Free Press) Detroit’s mayor sees other cities facing bankruptcy: No calls for federal bailout as city grapples with $19B debt (The Washington Times)

Cities Really Are Too Big to Fail (The Nation blogs)

Detroit’s Bankruptcy Reveals Dysfunction Common in Cities (Bloomberg)

Dueling explanations for Detroit collapse reflect ideology (The Deseret News of Salt Lake City, Utah)

Cries of Betrayal as Detroit Plans to Cut Pensions (The New York Times) After Detroit bankruptcy filing, city retirees on edge as they face pension cuts (The Washington Post)

Does Dodd-Frank work? We asked 16 experts to find out (The Washington Post blogs)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Sunday, July 21, 2013

Sunday roundup (07-21-13)

Euro-zone Deflation Warning for U.S. (Elliott Wave International)

China risks deflation trap as true GDP crumbles: China is sliding towards a deflation trap and may be in outright recession already if data are measured accurately, with serious knock-on risks for the global economy. (The Telegraph)

Avalanche of City Debt Downgrades [in the US] and Eventual Bankruptcies Coming Up; Numerous Cities Bankrupt Over Pension Promises (Mish's Global Economic Trend Analysis blog) Detroit not alone under crushing pension obligations (USAToday) Now That Detroit’s Gone Bust, Is Your City Next? (Cyniconomics) Detroit bankruptcy: Is it a warning sign of things to come?: Detroit's financial meltdown has lessons for Canada and the rest of the global economy, Don Pittis writes (The Canadian Broadcasting Corporation)

Conservatives and Libertarians Should Support the Return of Glass-Steagall by William K. Black (The Huffington Post)

Unofficial Problem Bank list declines to 734 Institutions (Calculated Risk blog)

Is CNBC Trying To Hide This Video From The Internet? [this is the full interview, which heretofore has not been posted on this blog] (Cliff Küle's Notes blog) Sen. Warren Leads Charge to Break Up Big Banks (CNBC)


Worldwide Honey Bee Collapse: A Lesson in Ecology (Nation of Change)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Saturday, July 20, 2013

Saturday roundup (07-20-13)

Quote of the Day: "What the Fed is missing is that we're not in a normal business cycle, we're in a DEPRESSION. You know, anyone under the age of 90 has never lived through a depression, at least one that they can remember, and a lot of people are curious about it, they say, 'Gee, I wonder what a depression feels like.' Well, this is what it feels like. You're in a depression. ... You can have growth in a depression. You can have a rising stock market in a depression. ... The definition of a depression is ... that the growth never gets back to trend. ... In 2009, we didn't take the pain. What we did is paper it over. We're still papering it over. We're going to have low growth as far as the eye can see. That's a depression." -- James G. Rickards, US government consultant, senior managing director, Tangent Capital, author of the book Currency Wars (The Korelin  Economics Report)  (AUDIO INTERVIEW

G20 puts growth before austerity, vows to tread carefully (Reuters)

Merkel Rules Out Second Writedown in Greece as Too Risky (Bloomberg)

Portugal ruling party vows to meet bailout goals after pact talks fail (Reuters)

June jobless rates rise in 28 states [= more than half of all US states] (USAToday)

Detroit Bankruptcy Judge Rhodes Is Ponzi-Law Scholar (Bloomberg)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Friday, July 19, 2013

Friday roundup (07-19-13)

G20 to chart road to recovery as growth fears mount (Deutsche Welle)

Italy, Twinned With Japan (The Wall Street Journal blogs)

Record Bankruptcy for Detroit (The Wall Street Journal)

CNBC pulls video of Elizabeth Warren smacking down anchor over Glass-Steagall [posted on this blog two days ago] (America Blog) Elizabeth Warren fights for Glass-Steagall on CNBC! (Youtube)



CPS [Chicago Public Schools] to lay off 2,113 teachers, staff; CTU [Chicago Teachers Union] calls it ‘a bloodbath’ (The Chicago Sun-Times)

Greece's Piraeus bank aims to cut around 1,500 jobs: source (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Thursday, July 18, 2013

Thursday roundup (07-18-13)

Germany refuses fresh relief for Greeks as debt ratio spirals out of control: German finance minister Wolfgang Schauble has warned Greek leaders on a heavily guarded trip to Athens not to play with fire by pressing for fresh debt-relief, and brushed aside claims that Greece’s rescue package is falling apart. (The Telegraph)

Italy President warns against endangering government stability -- [if the government were to fall, he said, "The damaging effects on our international relations and on financial markets would be seen immediately and could be impossible to recover from".] (Reuters) Napolitano blinda il Governo: se cade contraccolpi irrecuperabili. Processo Mediaset, no a sovrapposizioni (Il Sole 24 Ore)

U.S. Postal Service renews push for five-day mail delivery (Reuters)

Detroit goes bankrupt, largest municipal filing in U.S. history (The Washington Post) Billions in Debt, Detroit Tumbles Into Insolvency (The New York Times) Detroit just filed for bankruptcy. Here’s how it got there. (The Washington Post blogs) Detroit becomes largest US city to file for bankruptcy: After nearly a month of negotiations between Detroit's emergency manager and the city's creditors, a judge will now oversee the process to resolve the city's debts. NBCâ?Ts John Yang reports.  (NBC Nightly News with Brian Williams)

Visit NBCNews.com for breaking news, world news, and news about the economy


An Unhappy Birthday For Dodd-Frank As Momentum Builds For The Next Meltdown (Forbes) An Unhappy Birthday For Dodd-Frank: The 'Too Big To Fail' Problem Gets Bigger (Forbes)

Vanderbilt University Medical Center to cut 1,000 jobs (Nashville Business Journal)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 07-18-13)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Jobless claims dropped by 24,000 to 334,000 in the week ended July 13, the fewest since early May, from a revised 358,000 the prior period, Labor Department figures showed today in Washington." (Bloomberg)

SEE LAST WEEK'S POST HERE.

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Wednesday, July 17, 2013

Wednesday roundup (07-17-13)

Fitch downgrades French banks, regions (The Associated Press)

Greece to cut thousands of public sector jobs: Latest austerity measures could pave way for more than 20,000 layoffs by end of next year, despite days of protests. (Al Jazeera)

Italy's central bank sees even steeper decline for economy (CNBC)

Bank of Portugal Lowers 2014 Growth Forecast on Budget Cuts (1) (Bloomberg)

Spain's public debt rises to nearly 90 per cent of GDP (dpa)

OBR warns on costs of ageing UK population: Office for Budget Responsibility says health spending will become one of the biggest extra burdens on the public purse and governments will need to make further cuts or increase taxes  (The Guardian)

IMF: China’s economy is ‘unsustainable’ without major reform (The Washington Post) China defies IMF on mounting credit risk and need for urgent reform: If you think China's Communist Party fully understands the mess it has created by ramping credit to 200pc of GDP and running the greatest investment bubble know to man, read its shockingly complacent response to warnings from the International Monetary Fund. (The Telegraph)

U.S. housing starts fall to 10-month low -- "further evidence of a sharp slowdown in economic activity in the second quarter" (Reuters)

Elizabeth Warren’s new fight: Why even the Tea Party backs it!: Banks that try to take private losses and pin them on taxpayers may have a new problem. Here's what you should know (Salon) A Brief Refresher on Glass Steagall by Barry Ritholtz (The Big Picture blog) Senator Warren Discussing Glass Steagall (The Big Picture blog) Sen. Warren on CNBC's "Squawk Box" (Youtube)



New York to hold public hearing on proposed GMO labeling law: The New York Assembly’s Committee on Consumer Affairs and Protection has scheduled a public hearing to debate a bill to mandate labeling of food ingredients developed from genetically engineered products. (The New York Daily News)

Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday, July 16, 2013

Tuesday roundup (07-16-13)

OECD fears jobless threat to social fabric as Europe left behind: The unemployment gap between the US and eurozone states will reach the highest levels in modern history next year, according to a report by the OECD. (The Telegraph) OECD: Unemployment [in Europe] to stay high next year (The Associated Press)

Europe to call for U.S., Japan fiscal consolidation [= cut government debt to spur global growth] at G20 (Reuters)

Europe's car sales hit 17-year low – but a recovery is far off (CNBC) European car sales sink to 20-year low in first half (Reuters)

Thousands of Greeks join strike against public sector layoffs (Reuters)

Italy's public debt hits new record of 2.0747 trillion (Gazzetta del Sud)

[In the US] Key Measures show low inflation in June (Calculated Risk)

A Jobless Recovery Is a Phony Recovery: More people have left the workforce than got a new job during the recovery—by a factor of nearly three. by Mort Zuckerman (The Wall Street Journal) The Wages of a Phony Recovery: It is imperative that we focus on innovative and creative economic policies (U.S.News & World Report)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Monday, July 15, 2013

Monday roundup (07-15-13)

Fitch cuts European Financial Stability Facility to AA+ (The Associated Press)

IMF Says Spain Banks Must Bolster Capital as Risks Stay High (Bloomberg)

Why China's slowdown spells trouble for Europe (CNBC) China Growth Slows to 7.5% as 2013 Target Under Threat (Bloomberg)

[US] Economy skids dangerously close to contraction: Spending weakening, but incomes still growing (Marketwatch)

Report: $151B in debt by NY public authorities (Newsday)

800 [AUSTRALIAN] PUBLIC SERVICE JOBS CUT TO HELP PLUG CARBON TAX BUDGET BLACK HOLE (The Australian Broadcasting Corporation)

Phone company lays off hundreds [= about 700] amid inquiry (Indianapolis Business Journal)

[About 575] Pratt Employees Take Buyouts; Layoffs Still Necessary (The Courant of Hartford, Connecticut)

Bank of America shedding 543 Fresno jobs (TBJNow)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Sunday, July 14, 2013

Sunday roundup (07-14-13)

Spain avoided full rescue thanks to bank bailout: minister (Agence France Presse) Spain out of recession, must nurture recovery: minister (Reuters)

China economic slowdown seen deepening as Beijing pushes reform (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Saturday, July 13, 2013

Saturday roundup (07-13-13)

Elizabeth Warren and John McCain want Glass-Steagall back. Should you? (The Washington Post blogs)

SEC frustrated over pace of U.S. financial crisis reforms (Reuters)

Unofficial Problem Bank list declines to 742 Institutions (Calculated Risk blog)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Friday, July 12, 2013

Friday roundup (07-12-13)

Euro zone's queasy feeling as it looks in Japan mirror [July 10] (Reuters)

Fitch cuts French credit rating [from AAA] on budget, economy woes (Reuters)

Constitutional crisis pushes Portugal closer to the brink: Portugal's borrowing costs have spiked dramatically after key political parties failed to agree on a national salvation front, raising the risk of a snap election and an anti-austerity revolt. (The Telegraph) Portugal opposition wants bailout renegotiation (Reuters)

‘Debt Peril’ Awaits 1.25 Million UK Households If Rates Rise [The Financial Times via] (CNBC)

David Stockman: "The Born-Again Jobs Scam" [in the US] (ZeroHedge blog)

Cramer: Has UPS called recovery into question? (CNBC)



Sen. Elizabeth Warren seeks to revive Glass-Steagall bank limits: The Senate bill would not have prevented the fiscal crisis, but Sen. Elizabeth Warren says it would bar banks that make risky investments from taking deposits insured by the FDIC. (The Los Angeles Times) Elizabeth Warren Hits Big Banks Where It Hurts, New Bill Would Restore Glass-Steagall (Forbes) Sen. Elizabeth Warren Pitches 21st Century Glass-Steagall Bill: Sen. Elizabeth Warren, D-Mass., argues we need to break up big banks. [This is a video interview, I have used the embed code, but at this writing the video is not displaying in the blog. It is a mystery to me why some embed codes do not work.] (FoxBusiness)


Bank Lobbyists Gearing Up to Take Down New Glass-Steagall Bill (Yahoo!'s The Daily Ticker)



Two Sentences that Explain the Crisis and How Easy it Was to Avoid by Bill Black (The Big Picture blog) The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States (The US Government Printing Office)

Brazil's Eletrobras cuts over 4,000 jobs in buyout (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Thursday, July 11, 2013

Thursday roundup (07-11-13)

Renewed fear of global recession as companies rein in spending plans: Growth in spending on machinery and investment by the world’s 2,000 biggest companies has begun to contract for the first time since the Lehman crisis, led by sharp falls in China and a near collapse in Latin America. (The Telegraph)

Europe's debt crisis simmers (The BBC)

Portugal president throws politics into disarray (Reuters) Portugal requests delay of bailout review due to crisis (Reuters) Portugal's political turmoil puts bailout at risk - economy: Portugal's political crisis has continued to deepen, moving it closer to needing a second bailout.... (EuroNews)



Greeks protest job cuts, unemployment hits new high (Reuters)

Nearly one million households [in the UK] face a debt timebomb and may spend HALF their income on repayments as interest rates rise (The Daily Mail)

[In the US] Warren Joins McCain to Push New Glass-Steagall Law for Banks (Bloomberg) Senators Introduce Bill to Separate Trading Activities From Big Banks (The New York Times blogs) Senators introduce bill to break up megabanks (Reuters) 21st Century Glass Steagall [the bill] (The United States Senate) Mr. Smith Goes to Washington (1939) - James Stewart (Youtube)



What Every Student in America Needs to Know About the Federal Reserve (Of Two Minds blog)

Study raises new concern about earthquakes and fracking fluids (Reuters)

Uni-Select closing locations, eliminating 600 jobs in U.S. restructuring (Times Colonist of Victoria, British Columbia)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 07-11-13)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial jobless claims rose by 16,000 to a seasonally adjusted 360,000 in the week ended July 6, the Labor Department said Thursday." (Marketwatch)

Jobless Claims in U.S. Unexpectedly Rise to Two-Month High (Bloomberg)

SEE LAST WEEK'S POST HERE.

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Wednesday, July 10, 2013

Wednesday roundup (07-10-13)

Federal Reserve’s Easing of Stimulus Could Hamper a European Recovery (The New York Times)

The wheels are coming off the whole of southern Europe: Europe’s debt-crisis strategy is near collapse. The long-awaited recovery has failed to take wing. Debt ratios across southern Europe are rising at an accelerating pace. Political consent for extreme austerity is breaking down in almost every EMU crisis state. And now the US Federal Reserve has inflicted a full-blown credit shock for good measure. (The Telegraph)

Merkel ally says new Greek debt restructuring possible in 2014 or 2015 [Bloomberg via] (Kathimerini)

Portugal’s political turmoil could lead to debt restructuring [The Financial Times via] (The Globe and Mail of Toronto)

Japan consumer mood slips in challenge to Abenomics (Reuters)

Diverging Debate at Fed on When to End Stimulus (The New York Times)

Risk council designates AIG, GE Capital for tougher oversight (Reuters)

Detroit edges toward brink of bankruptcy (MSNBC) From Bad to Worse in Detroit (The Mess That Greenspan Made blog) As Detroit teeters on bankruptcy, creditors are left holding the bag (The Washington Post) Financial Crisis Just a Symptom of Detroit’s Woes (The New York Times) Detroit Police and Fire pension fund may try to force city's $30M payment (The Detroit News) Bankrupt Cities, Municipalities List and Map (Governing)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday, July 9, 2013

Tuesday roundup (07-09-13)

IMF Reduces Global Growth Outlook as U.S. Expansion Weakens (Bloomberg) IMF: Only Japan Shines As U.S. Lags, Europe's Recession Deepens And China Brings Down EMs (Forbes)

Italy’s Credit Rating Cut to BBB by S&P; Outlook Is Negative (Bloomberg) S&P Cuts Rating on Italy One Notch on Weak Economic Prospects (The Associated Press)

Mad Latvia defies its own people to join the euro (The Telegraph blogs)

British Manufacturing Decline Casts Doubt on Recovery: Economy (Bloomberg)

[In a Proposal] U.S. Boosts Bank Capital Demands Above Global Standards (Bloomberg)

Fumbling Through the Fog Around Too Big to Fail by Simon Johnson (Bloomberg)

Tangent's Rickards Says Fed Is Improvising (Audio): James Rickards, senior managing director at Tangent Capital Partners LLC, says the economy is at risk of falling into a depression, thanks to the Federal Reserve experimentation. Rickards talks with Bloomberg's Kathleen Hays and Vonnie Quinn on Bloomberg Radio's "The Hays Advantage." (Bloomberg)

Eliot Spitzer's Master Plan: Comptroller [of NYC] as Corporate Scourge (Bloomberg) The Worst People In New York All Hate Eliot Spitzer — And That's Why You Should Like Him (The Business Insider) Spitzer Quickly Hits Establishment Headwind (The New York Times)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.