Saturday, August 31, 2013

Saturday roundup (08-31-13)

Bernanke's Deposition: AIG, Goldman, Merrill and Bailouts by Janet Tavakoli (The Huffington Post)

Unofficial Problem Bank list declines to 707 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, August 30, 2013

Friday roundup (08-30-13)

EU unemployment steady at record 12% (Agence France-Presse)

Worldwide loss of oil supply heightens Syria attack risk: Libya's oil output has crashed to a near standstill over the past year as warlords and strikes paralyse the country, tightening the screws on global crude supply as the crisis in Syria comes to a head. (The Telegraph)

Bank of England: consumers turn to loans, credit cards and overdrafts: Data shows 3.5% annual increase in consumer credit, showing shoppers' willingness to turn to costly borrowing ["to maintain their standard of living in the face of falling real wages"] (The Guardian)

India GDP growth slows more than expected: Third straight quarter of sub-5% growth (Marketwatch)

India pushes 'shock and awe’ currency plan to save BRICS: India is pushing for joint “shock-and-awe” intervention by key developing states to halt capital flight and shore up currencies, in a move that risks backfiring and triggering a vicious spiral. (The Telegraph)

Markets Are Saying [US] Economic Recovery Has Peaked (Forbes)

Billions exit bank accounts after years of inflows (CNBC)

Fiat plans to extend layoffs for 5,300 Mirafiori factory workers, report says (Bloomberg)

South Africa's Amplats cuts 4,800 jobs (Reuters)

DELL TO SLASH OVER 1,000 ENTERPRISE JOBS [in India] (CBROnline)

Bank of America to slash 1,000 jobs in Ohio: Mortgage and consumer banking unit impacted (Housing Wire)

Broomfield's Level 3 cuts 700 jobs worldwide, including 150 in Colorado (The Denver Post)

     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, August 29, 2013

Thursday roundup (08-29-13)

Euro zone's strugglers seen needing more bailouts to plug finances: Reuters Poll (Reuters)

Euro zone, IMF to press Greece for foreign agency to sell assets (Reuters)

Portugal top court rejects labor bill in blow to government austerity drive (Reuters) Portugal court rules against civil servant sacking plan (The BBC)

   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, 08-29-13)

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 in the week ended Aug. 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said 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, August 28, 2013

Wednesday roundup (08-28-13)

Eurozone is heading for relapse back into crisis: Weaknesses will be exposed as markets test ECB policy by Satyajit Das (The Financial Times)

Emerging market rout is too big for the Fed to ignore: The US Federal Reserve has told Asia, Latin America, Africa and Eastern Europe to drop dead. (The Telegraph)

Greece should never have been allowed to join euro: Merkel (CNBC)

The House GOP is bracing for debt-limit battle and likely to target Obamacare first (The Washington Post)

Lehman’s Morbid Legacy by Mohamed A. El-Erian (Project Syndicate)

     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, August 27, 2013

Tuesday roundup (08-27-13)

Dutch Budget Deal to Impose More Austerity Despite Resistance (Dow Jones Newswires) Dutch agree more budget cuts for 2014 - finance minister (Reuters)

Portugal’s recovery isn't really a recovery at all: Earlier this month Portugal surpassed expectations when it reported the strongest quarterly growth in the European Union, seemingly confirming its position as “the good student” of the EU-IMF-ECB “troika”. (The Telegraph)

El-Erian: [US] Economy Can't Handle More Uncertainty: Mohamed El-Erian, CEO and co-CIO at PIMCO, examines the impact of the Federal Reserve on growth in the United States, potential economic disruptions due to the pending battle over the debt ceiling in Washington and his eight questions for markets to watch. He speaks on Bloomberg Television's "In The Loop." (Bloomberg)



G20 body says U.S. could improve financial risk spotting (Reuters)

US demands more than $6 billion from JPMorgan to settle claim [The Financial Times via] (CNBC)

Bank Executive Admits to Using Bailout Money to Buy Condo (The New York Times blogs)

JPMorgan's former 'London Whale' supervisor arrested in Spain (Reuters)

Fiat said to extend layoffs for 5,300 Turin factory workers (Bloomberg)

Sprint Cuts 800 Jobs After Nextel Network Shutdown (Bloomberg)

PeaceHealth to eliminate 500 jobs (Portland 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.

Monday, August 26, 2013

Monday roundup (08-26-13)

Greece may need new bailout of 10bn euros (Agence France-Presse) When will it end? Greece says it wants ANOTHER £8billion to stay afloat - but won't accept any more austerity measures (The Daily Mail)

Italy PM meets with centre right to defuse growing row (Reuters) [But ...] "'It doesn't look like the politicians will find a compromise to get out of this crisis, which in turn puts all measures that need to be taken to spur the economy on ice,' a Milan-based trader said." (Reuters)

Portugal’s public debt rises to 131.4 pct of Gross Domestic Product (Macauhub)

Saudis offer Russia secret oil deal if it drops Syria: Saudi Arabia has secretly offered Russian a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime in Syria. (The Telegraph)

None of the experts saw India's debt bubble coming. Sound familiar?: India's economic problems reflect a global boom-to-bust pattern. Why do policymakers act surprised? (The Guardian)

Weak U.S. durable goods data dims growth outlook (Reuters)

Obama administration sees mid-October default deadline (Reuters) U.S. faces mid-October deadline to raise debt limit (The Washington Post)

Economists: Future deficits top US fiscal problem (The Associated Press)

The 5% recovery: Why most are still in recession (CNBC)

The Leveraged Buyout of America by Ellen Brown (The Web of Debt blog) America Is Heading Toward A Feudalistic Economy (Cliff Küle's Notes 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.

Sunday, August 25, 2013

Sunday roundup (08-25-13)

The crisis is over. The challenges for central bankers are only beginning. (The Washington Post blogs) Goldman Sachs: Signs of 'a slow recovery' in the eurozone: Huw Pill, Goldman Sachs' chief European economist says signs of growth are there in the eurozone but more must be done than just treating the symptoms of its underlying problems. (The Telegraph)



National debt and deficit data for every OECD country: Developed economies around the world are in trouble with their budget deficits. See how their national debts compare (The Guardian blogs)

Italian centre right warns of coalition collapse over Berlusconi vote (Reuters) Berlusconi, Santanchè: faremo cadere governo. Brunetta: se Pd vota decadenza sarà crisi (Il Sole 24 Ore) Berlusconi: rompiamo, andiamo al voto con questa gente nessun governo (Il Messagero)

Britain to be roped into EU rescue aid for Greece: The European Commission is planning use of EU budget funds for the next rescue of Greece, roping Britain into future responsibility for shoring up the eurozone currency structure. (The Telegraph)

FLSmidth sheds 1,100 jobs as miners cut capital spending (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, August 24, 2013

Saturday roundup (08-24-13)

Is Europe still in crisis?: "Eurogeddon" was the buzzword on everyone’s lips in 2011. But is a euro recovery real or imagined? (The Telegraph) Reform is still needed in recovering eurozone: Financial calm. Economic recovery. No dramatic European Central Bank interventions. No EU crisis summits. (The Telegraph)

Merkel Says G20 Needs to Push Harder to Control Hedge Fund Risks (Bloomberg)

[In Ireland] Sharp rise in numbers struggling to pay mortgages (The Irish Independent) Nearly 100,000 mortgages in arrears by over three months: Central Bank figures show over 200 homes repossessed by banks in second quarter of year (The Irish Times) Repossessions up as 30,000 homeowners over two years in arrears with repayments: Lenders take control of 223 properties between April and June (The Irish Times) Main lenders defy orders to tackle mortgage crisis: Slow response 'astounding' as homeowners sinking in debt (The Irish Independent)

Unofficial Problem Bank list [in the US] declines to 714 Institutions (Calculated Risk blog)

Sunrise Bank of Arizona Closed By Regulators, Fifth Bank Collapse For Capitol Bancorp in Three Months [news of the bank failure was posted here yesterday] (Problem Bank List)

     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, August 23, 2013

Friday roundup (08-23-13)

Former ECB policymaker says euro zone crisis may flare up again (Reuters)

'Abysmal' Dutch economy threatens euro zone recovery (CNBC)

Italian coalition close to breaking point over Berlusconi fate (Reuters)

U.S. Growth Rate Worse Since Recovery (Forbes)

U.S. new home sales fall sharply; house prices rise (Reuters)

Glass-Steagall Critics Get a Little Bit Right and the Rest All Wrong (U. S. News & World Report blogs)

Regulators close small banks in Tennessee, Arizona; puts this year’s US bank failures at 20 (The Associated Press)

Sunrise Bank of Arizona of Phoenix AZ had a troubled assets ratio of 207.2%. (BankTracker)

Community South Bank of Parsons TN had a troubled assets ratio of 529.2%. (BankTracker) Community South Bank, TN, Becomes Second Largest Bank Failure of 2013 (Problem Bank List)

     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, August 22, 2013

Thursday roundup (08-22-13)

Jens Weidmann slams 'reckless' talk of euro break-up as Greece bail-out debate intensifies: A break-up of the eurozone would have “grave consequences”, the head of Germany’s central bank has warned, while talk of a third bail-out for Greece has intensified. (The Telegraph)

Emerging market rout threatens wider global economy: The $9 trillion (£5.8 trillion) accumulation of foreign bonds by the rising powers of Asia, Latin America and the emerging world risks going into reverse as one country after another is forced to liquidate holdings to shore up its currency, threatening to inflict a credit shock on the global economy. (The Telegraph)

Eurogroup chief becomes latest to admit Greece on course for third bailout: Jeroen Dijsselbloem's comments cast shadow over news that eurozone companies are reporting strong growth (The Guardian) Third bailout for debt-laden Greece 'inevitable', Eurogroup chief concedes (This is Money)

Cyprus Bank’s Bailout Hands Ownership to Russian Plutocrats (The New York Times)

[In the US] Household income has dropped 4.4% since recession ended (The Los Angeles Times) Report: Household income below end-of-recession (The Associated Press)

FPL, sister company eliminating 1,000 jobs (The Miami Herald)

     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, 08-22-13)

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 more than expected last week, to 336,000, but remained near their lowest level since 2007." (The Los Angeles Times)

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, August 21, 2013

Wednesday roundup (08-21-13)

ECB and Germany play down talk of third Greek bailout (Reuters)

Ireland's Household Debt Crisis Still Far From Over [--] Irish Homeowners Still Stressed: Many Irish homeowners are finding it difficult to make their mortgage payments (The Wall Street Journal)

FOMC Minutes: "Almost all Committee members agreed that a change in the purchase program was not yet appropriate" (Calculated Risk blog)

Recession’s pain reaching deep into the economic recovery (The Washington Post)

The epic crisis in retirement savings: Vast majority of Americans unprepared for retirement. Median retirement savings for those 25 to 34? Zero dollars. (MyBudget360)

Wells Fargo to cut 2,300 mortgage jobs as refinancing slows (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.

Tuesday, August 20, 2013

Tuesday roundup (08-20-13)

Europe set to lose 1.9 million jobs, as business moves offshore: report (CNBC)

Greece needs third bail-out, admits German finance minister: Wolfgang Schaeuble, Germany's finance minister, has made an unexpected admission that Greece will need a third bail-out, just weeks before German national elections. (The Telegraph) German Fin Min says Greece will need a 3rd aid programme (Reuters) If Greece needs a third bailout, Europe had better find a formula that sticks: A better approach would see Greece's lenders take more pain up-front – but is Germany prepared to support that? (The Guardian)

Record bad debt plagues Spanish banks (the olive press)

If U.S. Housing Is Back, Where Are The Jobs? (Cliff Küle's Notes blog) Housing Market Won't Recover Until Unemployment Falls Below 7%: Miller Samuel CEO: The Daily Ticker's Lauren Lyster talks with Miller Samuel's Jonathan Miller about the state of the U.S. housing market. (Yahoo!'s The Daily Ticker)



Fed Finds 18 Large Banks Weak in at Least One Capital Area (Bloomerg) Banks are falling short in planning for the worst, Fed says (The New York Times)

Why Senator Warren's '21st Century Glass-Steagall Act' Is Never Going to Happen (The Huffington Post)

Charting Insolvency: Social Security and Wages (Of Two Minds blog)

How Changing Bankruptcy Laws For Student Loans Could Revitalize The Economy (Think Progress)

Detroit bankruptcy challenged on constitutional grounds (Reuters)

TAKEN: Under civil forfeiture, Americans who haven’t been charged with wrongdoing can be stripped of their cash, cars, and even homes. Is that all we’re losing? (The New Yorker) Are Innocent Citizens at Risk of Police Seizure of Their Cash, Cars and Homes?: Property seizure is a profitable practice for local law enforcement agencies, long used to deprive mobsters and drug kingpins. But the police can also take personal goods away from citizens who haven't been proven guilty of a crime. Ray Suarez talks to Sarah Stillman who investigated civil forfeiture for The New Yorker. (PBSNewshour)




Nationalised Spain bank plans 2,453 layoffs: union (Agence France Presse)

Nearly 700 layoffs announced in North Texas home mortgage industry (WFAA)

     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, August 19, 2013

Monday roundup (08-19-13)

Everything Before The Financial Crisis Is Now Worse & Bigger (Cliff Küle's Notes blog) James Rickards-Fed Money Printing Won't Stop because Economy is Fundamentally Weak (Youtube)



The Trends Few Dare Discuss: Social Security and the Decline in Full-Time Employment by Charles Hugh Smith (Of Two Minds blog)

Netherlands Won’t Try to Achieve EU Budget Deficit Goal in 2014 (Bloomberg)

Amplats to cut 7,000 South African jobs, union 'shocked' (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.

Sunday, August 18, 2013

Sunday roundup (08-18-13)

Governments face extra debt costs as stimulus dries up (Agence France Presse)

Spirit of boom-time mortgages lives on in Europe (Reuters)

Ripping Off Young America: The College-Loan Scandal: The federal government has made it easier than ever to borrow money for higher education - saddling a generation with crushing debts and inflating a bubble that could bring down the economy (Rolling Stone)

     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, August 17, 2013

Saturday roundup (08-17-13)

Take care: better economic weather does not end the eurozone storm: Behind some good GDP data, fundamentals remain grim in most countries in the 17-member currency bloc (The Observer)

Report: Half of All [US] Homes Are Being Purchased With Cash [The Wall Street Journal via] (Yahoo! Finance)

Unofficial Problem Bank list declines to 717 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, August 16, 2013

Friday roundup (08-16-13)

U.S. Consumer Confidence Falls From a Six-Year High (Bloomberg) CHART: What Consumer Sentiment Numbers Don't Tell You: The latest consumer sentiment reading dropped considerably from June's six-year high, but what does that even mean? (U.S. News & World Report)

U.S. retailers say uneven recovery keeps consumers cautious (Reuters)

Spanish public debt in June reaches 90.2 pct of GDP (Xinhua)

The New Dutch Disease: Mortgage Debt (The Wall Street Journal blogs) The Dutch, Europe's apostles of austerity, feel the economic pain (Reuters)

Chinese banks' bad debt seen as twice official figure; capital raisings ahead: Banks expected to tap capital markets as they prepare for a surge in non-performing loans (South China Morning Post)

[India's] Educomp starts cost optimisation; cuts 3,500 jobs (PTI)

AOL to cut 500 jobs at Patch: Almost half of the local-news division's 1,000 employees will lose their jobs. CEO Tim Armstrong said he hopes to make Patch profitable by the end of the year. (Crain's New York Business)

     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, August 15, 2013

Thursday roundup (08-15-13)

One swallow doesn't make a summer for euro zone (Reuters)

Walmart Earnings Disaster Exposes a Collapsing [US] Economy: Davidowitz: Retail expert Howard Davidowitz discusses Walmart earnings and why weakness out of the world's largest retailer is a sign of worse to come for consumers [VIDEO] (Yahoo!'s Breakout)

Job cuts ahead [of 1,700 workers] as Rio puts Mongolian expansion on hold (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, 08-15-13)

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.)

"The number of claims for jobless benefits dropped by 15,000 to 320,000 in the week ended Aug. 10, the least since October 2007, according to Labor Department data today in Washington." (Bloomberg)

U.S. jobs, inflation data support tapering of Fed bond buying (Reuters)

The really bad news behind the jobless claims drop (CNBC)

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, August 14, 2013

Wednesday roundup (08-14-13)

Eurozone escapes recession, debt crisis clouds outlook (Agence France Presse) Watch out: euro zone recovery faces ‘serious headwinds’ (CNBC) Greece, others still struggling with unemployment, debt despite end to eurozone recession (The Associated Press) Eurozone crisis over? The single currency bloc's long recession has finally ended... ... but it would be dangerous to assume that the eurozone's troubles are now all in the past (The Independent) Eurozone's longest-ever recession ends (The Associated Press)

Has Austerity Failed in Europe? (Project Syndicate)

Cyprus recession deepens after bailout (Agence France Presse)

Tokyo Time Bomb: Japan's Looming Debt Disaster (The National Interest)

China Banks’ Bad Loans Rise for Seventh Quarter as Economy Slows (Bloomberg)

[Meanwhile] China Engineers a Credit Crisis to Deleverage Shadow Banking [July 17] (EconoMonitor blogs)

Bullard: Premature taper [by US Federal Reserve] could increase threat of deflation (Reuters) Fed's Bullard advocates caution in tapering bond buying (Reuters)

Obama’s dangerously heroic view of the Fed (Reuters blogs) Four Questions for Fed Chair Candidates by Sen. Bernie Sanders and Sen. Elizabeth Warren (The Huffington Post)

Dire Consequences Await as U.S. Debt Nears a Tipping Point (Money Morning)

New normal returns to DC this fall: Fiscal chaos (CNBC)

The credit crunch is officially over: Banks are finally lending more than when Lehman fell, but much of the new lending is going to corporations. (Fortune)

Government Charges Two Former JPMorgan Employees (The New York Times blogs)

Cisco cutting 4,000 jobs, CEO sees 'slow' progress (Reuters) Cisco Cutting Jobs as Revenue Forecast Misses Estimates (Bloomberg)

[German steelmaker] Salzgitter Plans to Cut More Than 1,500 Jobs (Bloomberg)

Hungary Steel Maker Dunaferr to Lay Off 1,500 People (The Wall Street 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.

Tuesday, August 13, 2013

Tuesday roundup (08-13-14)

Investors euphoric as US margin debt reaches 'danger' levels: Fund managers are around the world are gripped by euphoria, convinced that America is in full recovery and Europe has overcome its debt crisis. (The Telegraph)

Total net wealth of Irish households fell in first quarter: Decline comes despite continued fall in household debt to lowest level since 2006 (The Irish Times)

Sibanye looking to cut another 2 000 jobs as restructure bears fruit (Mining Weekly)

Heinz to cut 600 jobs in North America after sale of company (Reuters)

HP Laying Off 500 at Conway Service Center (Hispanic Business)

     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, August 12, 2013

Monday roundup (08-12-13)

Quote of the Day: "... how do we get inflation when the economy remains soft -- and unemployment relatively high? The idea that bond buying would destabilize inflation expectations has been proved completely incorrect. And repeated predictions that the economy would bounce back so fast that it would instantly overheat have also proved substantially off-target." -- MIT economist Simon Johnson (PBSNewshour)

So you think Europe's debt crisis is finally over? Time to think again: One of the factors underpinning renewed confidence in the UK economy is the belief that the crisis in Europe is now essentially over. (The Telegraph)

France is the biggest concern in Europe: Fed’s Fisher (CNBC)

Italy: Public debt reaches new record high of €2.075 trillion in June (ADNKronos)

Greece: A Primary Budget Surplus, Depression Continues (Calculated Risk blog) Greece stuck in recession, bailout targets at risk (Reuters)

'Life is harder' for UK workers as wages slide (CNBC)

[Ireland's] Ryanair pilots raise safety concerns [The Financial Times via] (CNBC)

Economic Expansion Slows Down in Japan (The New York Times) With a quadrillion in debt, there’s only one way out for Japan (Quartz)

Japan Is About To Repeat A Fiscal Mistake That Sent The Economy Into Deflation In 1997 (The Business Insider)

How Fast Can China Grow? Not as Fast as Most Analysts Think (Mish's Global Economic Trend Analysis blog)

China's real estate bubble: China's economy has become the second largest in the world, but its rapid growth may have created the largest housing bubble in history. Lesley Stahl reports. (CBSNews 60 Minutes)



The Fed Needs a Wall Street Watchdog at the Helm (U. S. News & World Report)

Federal Reserve Warns Leveraged ETFs Could Trigger 1987-Style "Cascade" In Stocks (Cliff Küle's Notes blog)

Micron to cut 1,500 workers after Elpida purchase (KTVB)

     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, August 11, 2013

Sunday roundup (08-11-13)

European banks need to sell £2.8 trillion of assets: Banks in Europe will need to slash €3.2 trillion (£2.8tn) of assets from their balance sheets over the next five years to meet new regulations designed to minimise the risk of further banking collapses in future. (The Telegraph)

Bundesbank says Greece will need extra aid by early 2014 - report (Reuters)

Guy does to bank what banks usually do to other people (MSN)  $700k windfall: Russian man outwits bank with hand-written credit contract (Russia Today)

     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, August 10, 2013

Saturday roundup (08-10-13)

City economists say eurozone recession is 'over': The eurozone has exited its longest recession since records began, official figures are expected to show this week. (The Telegraph)

Russian Economy Unexpectedly Slows as Recession Specter Returns (Bloomberg)

[In the US,] Half the Country Under Threat of Floods: ABC News' Ginger Zee shows you how to stay safe in a flash flood. (ABCNews)



Deadly floods hit several states: Heavy rains have hit several states across the middle of the country with more in the forecast -- and in Colorado, the flash flooding was deadly. NBC's Leanne Gregg reports. (NBC Nightly News with Brian Williams)

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


10 years after record blackout, U.S. electrical grid faces new and emerging threats (The Associated Press)

New Study Finds High Levels of Arsenic in Groundwater Near Fracking Sites (ProPublica)

Postal Service loses less, but cash crunch looms (CNNMoney)

The $1M Check That Sat in a Drawer: How Detroit Went Bust (Bloomberg)

Unofficial Problem Bank list declines to 723 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, August 9, 2013

Friday roundup (08-09-13)

Some thoughts on 'international reserves' by Hugo Salinas Price (Plata)

French industry output shrinks in June, recovery seen tentative (Reuters)

German Regulators Said to Review Off-Balance-Sheet Loans (Bloomberg)

Japan’s Debt Looks Like This: 1,000,000,000,000,000 Yen (The New York Times) Japan’s Debt Exceeds 1 Quadrillion Yen as Abe Mulls Tax Rise (Bloomberg) Just set fire to Japan's quadrillion debt (The Telegraph blogs)

U.S. wholesale inventories fall for second straight month (Reuters)

Has Obama Forgotten the Danger of Loose Mortgage Lending? [Editorial] (Bloomberg)

Obama Fraud Task Force Takes on the Big Banks (Bloomberg)

Authorities Plan to Arrest 2 Former JPMorgan Employees (The New York Times blogs) SEC seeks admission of wrongdoing from JPMorgan in ‘London Whale’ case (The Washington Post)

The Big Bank Fury: The SEC settles with big banks involved in the 2008 global financial crash and then brags about it. (Comedy Central's The Daily Show with John Stewart [and John Oliver])



The Big Bank Fury - Fabrice Tourre & Same Financial Misconduct: Goldman Sachs trader "Fabulous Fab" faces a potential life ban from the securities industry, and New York Attorney General Eric Schneiderman warns of repeat bad behavior. (Comedy Central's The Daily Show with John Stewart [and John Oliver])



SEC vs. Fabulous Fab: Sleuths at the SEC prove mid-level Goldman Sachs trader Fabrice Tourre misled his investors during the global financial crisis. (Comedy Central's The Colbert Report)

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Regulators seize bank in Wisconsin; brings this year’s US bank failures to 18 (The Associated Press) Bank of Wausau of Wausau WI had a troubled assets ratio of 216.9%. (BankTracker) Bank of Wausau, WI, Closed by Regulators – 18th Bank Failure of 2013 (Problem Bank List)

     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, August 8, 2013

Thursday roundup (08-08-13)

ECB forecasters cut view for euro-zone growth (Marketwatch)

What Angela isn’t saying: Euro-zone rescues have left sovereign debt too high to be sustainable (The Economist)

'Germany Is Critical': IMF Calls on Berlin to Loosen Pocketbook: Germany has passed its annual fiscal health check by the International Monetary Fund, but the watchdog is warning that the country's overreliance on exports still makes it susceptible to external shocks. (Spiegel Online)

Obama calls on Greece to balance austerity with growth as it emerges from recession (The Associated Press)

Greek unemployment hit new record in May of 27.6 percent (Reuters) Amazingly Greek unemployment is actually getting worse (Quartz) Every Country In Europe Should Be Glad It's Not Greece (The Business Insider)

Greece becoming new Kosovo as youth jobless hits 65pc: Greek youth unemployment has soared to a record 64.9pc as the country’s downward spiral continues almost unchecked. (The Telegraph) Defend Europe, if you still dare (The Telegraph blogs)

Here Is Why Italy Keeps Bailing Out Monte Paschi Again And Again And Again (ZeroHedge blog)

British firms cannot rely on eurozone to boost exports as single currency bloc is still at risk, warns Bank of England governor (This is Money)

Banks must help businesses create jobs or become 'socially useless' says Bank [of England] chief Mark Carney (The Independent)

US Consumer Spending Flat Since March - Gallup (Mish's Global Economic Trend Analysis blog)

Real Personal Income Points to Recession by Charles Hugh Smith (Of Two Minds blog)

Consumer credit numbers show the same frightening trend (Sober Look blog)

Cuts for Food Stamps, More Welfare for Farmers (Bloomberg)

Wall Street will cut 15% of its jobs over 18 months: Meredith Whitney (Marketwatch blogs)

Wall Street Banks Have Still Never Been Held Accountable, Says Tavakoli: JP Morgan Chase (JPM) revealed through a regulatory filing this week that it faced a civil and criminal investigation into whether it sold shoddy mortgage-back securities in the run-up to the financial crisis, Dealbook reports. Add it to the list. Just earlier this week, we learned the Justice Department and Securities and Exchange Commission sued Bank of America (BAC), accusing BAC of defrauding investors in a 2008 deal for $850 million in mortgage-backed securities. (Yahoo!'s The Daily Ticker)



Deaths of Manatees, Dolphins and Pelicans Point to Estuary at Risk (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.