Tuesday, December 31, 2013

Tuesday roundup (12-31-13)

The Economy’s Secret Success in 2013: The financial failures of the Great Recession — bank busts, foreclosures, and bankruptcies — shrank dramatically this year. And the success will feed on itself. (The Daily Beast)

[But ...] When Risk Is Separated From Gain, The System Is Doomed by Charles Hugh Smith (Of Two Minds blog)

Hewlett-Packard to cut 5,000 more jobs (Reuters)

Revlon to Exit Operations in China, Cut 1,100 Jobs (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 that an energy shock may be coming much closer in time than is generally imagined.

Monday, December 30, 2013

Monday roundup (12-30-13)

Steve Keen about money and debt [In Dutch: Me Judice - Steve Keen over geld en schulden] (Youtube)



In One Plain English Paragraph, Here's Why Deflation Is An Economic Nightmare (The Business Insider)

Merkel says permanently fixing euro zone crisis vital for Germany (Reuters)

China $3 trillion local government debt stirs alarm (Reuters) China local government debt hits $3 trillion (CNNMoney)

[US] Congress Is Screwing Public Transit Users — And We’ll All Pay the Price: The tax credit for public transit is set to fall by more than 45% next year while the subsidy for parking goes up. Why that's bad news for everyone (Time)

     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.

Sunday, December 29, 2013

Sunday roundup (12-29-13)

Police going easy on skint [= destitute] shoplifting mums in Austerity Britain: As Tory cuts bite into benefits and hit the most vulnerable in society, cops are working with support agencies to prevent some offenders going to prison (The Mirror)

Rising consumer debt [in the US] is good for the economy but not for consumers: Consumer borrowing is climbing at the fastest pace in more than five years, but with jobs still uncertain, they may be digging themselves into a familiar fiscal hole. (The Los Angeles Times)

Does journalism have a future? (The Times Literary Supplement) How Big Money & Big Media Undermine Democracy: John Nichols and Robert McChesney say the money and media complex is sabotaging our elections. Where do we go from here? [broadcast in November] (Bill Moyers & Company)

     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.

Saturday, December 28, 2013

Saturday roundup (12-28-13)

Eurozone 'sleepwalking into a decades-long deflation trap’: World's largest bond fund Pimco says falling prices are the biggest risk to the currency bloc in the new year (The Telegraph)

Thousands of [British] families face ticking time bomb of mortgage rate rises: If falling unemployment rates trigger a rise in Bank of England interest rates, research shows that a million households could suddenly find themselves in crushing financial trouble (The Observer)

Recovery [in the UK] 'built on housing bubble and consumer debt': Britain's rapid growth is built on a housing bubble, showing the economy remains "fundamentally flawed", IPPR warns (The Telegraph) Rising debt could stall UK recovery, economist warns: BRITAIN'S economic recovery will stall if the Government fails to tackle rising levels of household debt, a leading economist has warned. (The Express)

Rubber bullets fly as Turkey faces meltdown: PROTESTERS stormed the streets of Turkey’s biggest cities yesterday as a deepening corruption scandal threatened to bring down the government and sparked fears of a military coup. (The Express)

Holiday in Austerity Land: 1.3 Million Americans Lose Jobless Benefits (The Nation blogs)

Attempts to reduce wasteful government spending show austerity is a hard nut to crack (The Washington Post)

Unofficial Problem Bank list declines to 619 Institutions, Q4 Transition Matrix (Calculated Risk blog)

[Off-topic:] Reverse-Engineering a Genius (Has a Vermeer Mystery Been Solved?) (Vanity Fair)

     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.

Friday roundup (12-27-13)

Posted a day late

Tyler Cowen’s graph of the year: The Eurozone isn’t out of the woods (The Washington Post blogs)

Warning of ‘serious flaws’ in [Britain's] economy as debt rises again: Think-tank says recovery based on borrowing risks being unsustainable (The Independent) Rising household debt is cause for alarm, warns thinktank IPPR: IPPR warns Help to Buy scheme risks pumping up housing market bubble and puts recent recovery at risk (The Guardian)

Japan's deflation era is not yet a thing of the past: There are still risks from a consumption tax increase and foreign investment pushing up the yen. Shinzo Abe will take no chances (The Guardian blogs) Ex-Government Official Says Japan Has Three Hurdles to End Deflation (The Wall Street Journal blogs)

1.3 million Americans set to lose federal unemployment benefits Saturday (The Associated Press)

U.S. bank watchdogs to consider Volcker rule tweak [= "allowing banks to hold on to certain complex securities"] (Reuters)

BofA's legal costs mount in Countrywide mortgage fiasco: Prosecutors want BofA to pay $864 million over a program called 'The Hustle.' The bank already has shouldered about $50 billion in losses, settlements and other costs related to its Countrywide purchase. (The Los Angeles Times)

Three big things that could derail US economic recovery in 2014 (FoxNews)

Western Digital's HGST cuts 500 Singapore jobs, shifts production to Thailand (ZDNet)

     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.

Thursday, December 26, 2013

Thursday roundup (12-26-13)

Wait-and-see economy slows recovery from Great Recession (CNBC)

Bye-bye, unemployment benefits (MSNBC) How cutting benefits also will cut jobless rate (CNBC)

Ice, outages linger after U.S., Canadian storm; snow could hinder power restoration (The Washington Post)

Firstsource to cut 500 jobs in turnaround plan (The Economic Times of India)

     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.

Is it a recovery yet? (Weekly report, 12-26-13)

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 declined by 42,000 to 338,000 in the week ended Dec. 21, a Labor Department report showed today in Washington." (Bloomberg) "New jobless claims dropped by the most in more than a year ... but economists cautioned over reading too much into volatile data around the holiday season." (Marketwatch)

A Timely Decline In New Jobless Claims (The Capital Spectator)

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, December 25, 2013

Wednesday roundup (12-25-13)

Ukraine expects remaining $12 billion of Russian bailout in early 2014 (Reuters) Violent attacks reported against Ukraine protestors [The Financial Times via] (CNBC)

Graft Scandal Is Approaching Turkey Premier (The New York Times) Turkish PM replaces 10 ministers [= half of his cabinet] amid graft inquiry (Reuters)

The Obamacare individual mandate death watch (The Washington Times)

Winter weather: As temperatures plummet, hundreds of thousands face a Christmas without power (NBCNews)

     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.

Tuesday, December 24, 2013

Tuesday roundup (12-24-13)

Forget the currency war, now it’s a deflation war -- [Says HBSC: "Rather than removing deflationary trends, monetary stimulus merely allows central banks to export deflation to other parts of the world."] (CNBC) WASHINGTON & WALL STREET: 'BITCOIN ECONOMY' SURGES, REAL ECONOMY DEFLATES by Christopher Whalen (Breitbart)

Ukraine receives first payment as part of Russian bailout (PBSNewshour)

U.S. mortgage applications fall as refinance hits five-year low: MBA (Reuters) US mortgage applications tumble to a 13-year low: The number of Americans applying for mortgages has fallen 63 percent since a May peak, reflecting a cooling housing market and higher borrowing rates. (The Associated Press)

Detroit reaches new settlement with banks (Bloomberg)

Junk Loans Top ’08 Record as Safeguards Stripped: Credit Markets (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 that an energy shock may be coming much closer in time than is generally imagined.

Monday, December 23, 2013

Monday roundup (12-23-13)

Italy makes last-minute 2014 budget dash (CNBC)

China's $50 billion move to avert cash crunch (CNNMoney) Chinese Rates Surge Despite Central Bank’s Efforts (The New York Times) China's cash crunch threatens Shadow Banking shock: The credit squeeze in China is no longer a local issue and any misjudgment by the central bank will have global ramifications by Ambrose Evans-Pritchard (The Telegraph) China "Fixes" Liquidity Crisis By Banning Media Use Of Words "Cash Crunch" (ZeroHedge blog)

China's local government debt seen at $3 trillion as of end 2012: think tank (Reuters)

Expiration of unemployment benefits threatens US recovery, adviser warns (The Guardian)

U.S. bank group [= the American Bankers Association] launches Volcker rule legal challenge (Reuters)

100 Years Ago: Why Bankers Created the Fed (Ludwig von Mises Institute)

100 Years Is Enough: Time to Make the Fed a Public Utility by Ellen Brown (The Web of Debt blog)

[In Connecticut] Economists see little cheer in falling joblessness (The Associated Press)

Research raises concerns about global crop yield projections -- ["About 30 percent of the major global cereal crops – rice, wheat and corn -- may have reached their maximum possible yields in farmers’ fields"] (The University of Nebraska-Lincoln)

     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.

Sunday, December 22, 2013

Sunday roundup (12-22-13)

ECB's Praet says Italy must stay on path to lower debt: paper (Reuters) Peter Praet: “L’Italia è al punto di svolta: Uscire dall’euro? Un incubo”: Il capo economista Bce: siete usciti dalla recessione e il debito è stabilizzato. Ma avete risanato con troppe tasse e dovete riformare il mercato del lavoro per consentire alle aziende di crescere (La Stampa)

Pope Francis Urges Dialogue Over Violence To Anti-Austerity Protesters In St. Peter's Square (The Huffington Post)

The [US] Federal Reserve was created 100 years ago. This is how it happened. (The Washington 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 that an energy shock may be coming much closer in time than is generally imagined.

Saturday, December 21, 2013

Saturday roundup (12-21-13)

Bank of England warning on housing bubble as prices rise: Andrew Bailey says Bank of England is watching the housing market carefully and will not allow a 'free-for-all’ in mortgage provision (The Telegraph)

China credit crisis fears as central bank injects funds: Chinese stocks fall on liquidity crisis fears despite central bank pumping in cash (The Telegraph)

Japan Unveils Record 2014 Budget Draft as Debt Burden Mounts (Bloomberg)

Unofficial [US] Problem Bank list declines to 633 Institutions (Calculated Risk blog)

CBO on SS – Another 29′ Crash? (Bruce Krasting blog) The 2013 Long-Term Projections for Social Security: Additional Information (Congressional Budget Office)

     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.

Friday, December 20, 2013

Friday roundup (12-20-13)

S&P cuts EU's AAA rating, European officials dismiss move (Reuters)

The battle for euro-zone reforms: Angela all alone (The Economist blogs) Franco-German harmony faces fresh challenges: Berlin’s increasingly combative approach on trade issues is raising hackles (The Irish Times)

BOJ Keeps Record Easing as Fed Taper Helps Weaken Yen: Economy (Bloomberg)

Weak Recovery [in the US], but Comparatively Good (The New York Times)

What Recovery? The Average Family Is Still Poorer Than it Was Seven Year Ago (Time)

Chart of the Day: Here's Why Our Current Recovery Sucks So Bad (Mother Jones) Our Historic Austerity—in 1 Crazy Chart: "Stimulus" failed? What stimulus? (The Atlantic)

The Government Is Quietly Giving Way More Housing Aid To Rich People Than Poor People (The Business Insider)

At the Fed, Janet L. Yellen will lead a potentially fractious team: Yellen, who is expected to be confirmed Saturday as the Federal Reserve's chief, will try to forge consensus among incoming policymakers. Some are outspoken personalities. (The Los Angeles Times)

11 Elizabeth Warren Quotes From 2013 That Will Restore Your Faith In Democracy (PolicyMic)

Do We Even Need a Banking Sector? Not Any More by Charles Hugh Smith (Of Two Minds 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 that an energy shock may be coming much closer in time than is generally imagined.

Thursday, December 19, 2013

Thursday roundup (12-19-13)

Deflation Is Coming [in the Major Industrialized Nations], and It Doesn't Have to Be Bad (Bloomberg) The Fed isn't worried about inflation. But should it worry about deflation? [interview with the author of the preceding article] (Marketplace)

EU praises new bank body, but analysts skeptical (The Associated Press)

BOE Says U.K. Borrowers Vulnerable to Increasing Mortgage Rates (Bloomberg)

Obama administration says U.S. debt ceiling could be hit in February (Reuters) Lew warns Congress debt limit must be raised no later than early March (The Los Angeles Times)

Fed Focus Shifting to Stubbornly Low US Inflation (The Associated Press)

Fed Seen Tapering QE in $10 Billion Steps in Next Seven Meetings (Bloomberg)

Punk Economics - The Kidnapper wears Prada (Youtube)



Jim Rickards: Don’t worry Wall Street, the Fed’s (still) got your back (Yahoo! Finance's The Daily Ticker)



Rickards on Bernanke's best and worst decisions [made before the tapering announcement] (CCTV)



How Washington has choked off the recovery (Yahoo! Finance blogs)

Big Banks and the Failure of Bankruptcy by Simon Johnson (The New York Times blogs)

Lurid Subprime Scams Unveiled in Long-Running Fraud Trial by Matt Taibbi (Rolling Stone blogs)

Study links BP oil spill to dolphin deaths: US government scientists have for the first time found direct evidence of toxic exposure in the Gulf of Mexico (The Guardian) Deepwater Horizon Oil Spill Linked To Dolphin Lung Damage And Hormonal Imbalances (Think Progress) ["BP financed the study but is disputing its finding."] (Discovery)

Greece's National Bank to cut up to 2,000 jobs via redundancy scheme (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 that an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 12-19-13)

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 claims climbed by 10,000 to 379,000 in the week ended Dec. 14, the Labor Department said Thursday." (Marketwatch)

U.S. Jobless Claims Unexpectedly Rise [to an Almost Nine-Month High] on Holiday Distortions (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, December 18, 2013

Wednesday roundup (12-18-13)

Euro zone ministers agree on backstops for financing bank closures (Reuters)

The legacy of government debt in Europe bodes ill for growth (Credit Writedowns blog)

George Soros: Hope Can Overcome Hate in Greece (Open Society Foundation)



Thousands demand Italian government resign in Rome rally (Reuters) Italian anti-austerity rallies grow (SkyNews) Protests In Rome Over Austerity Measures (WBUR)



Italy's Bad Loans Reach 14-Year Peak in October (The Wall Street Journal)

Spain’s Regions Can’t Endure More Budget Cuts, Andalusia Says (Bloomberg)

BOE voted unanimously to keep rates, QE unchanged (Marketwatch)

Bernanke says recovery 'far from complete,' Fed stimulus will continue (The Los Angeles Times) Fed votes to pare stimulus, tapering monthly bond buys to $75 billion (The Los Angeles Times)
What Fed tapering means for you: Why investors aren’t the only ones who will feel the pinch (Marketwatch)

     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.

Tuesday, December 17, 2013

Tuesday roundup (12-17-13)

Euro-Area Inflation Holds at Less Than Half ECB Ceiling [= "Deflationary forces picked up"] (Bloomberg)

Euro zone set for drawn-out battle over banking rules (Reuters)

Greeks must unite to nurse economic recovery, says central bank (Reuters)

Italy’s president fears violent insurrection in 2014 but offers no remedy by Ambrose Evans-Pritchard (The Telegraph blogs) Italy could be racked by violent unrest, president warns (Reuters)

Russian bailout wins Ukraine economic respite but deepens political rift (Reuters) Russia Offers Ukraine a Financial Lifeline (The New York Times) Russia agrees to cut gas price for Ukraine by about one-third (Reuters) Ukraine Protesters Want Answers on $15 Billion Russia Aid (Bloomberg)

Carney Says U.K. Needs Sustained Recovery Before Rate Rise (Bloomberg)

GM to cut [undisclosed number of] South Korean jobs as Chevy pullout looms in Europe (Reuters)

[US] Consumer prices stay flat, inflation low ahead of key Fed meeting (The Los Angeles Times) Inflation remains muted in November (United Press International)

Poll: Nearly 80 Percent Thinks Economy Still in Recession (U. S. News & World Report blogs)

AP Survey: US Income Gap Is Holding Back Economy (The Associated Press) Will Be The Year Of 'Economic Populism.' Then What?: There will come a time when the American people demand, not just discussion and research, but solutions. (Crooks and Liars blog)

Nearly 6.4-million homeowners still underwater on their mortgages [= "owe more on their homes than they are worth"] (The Los Angeles Times)

Will Republicans Pick a Fight Over the Debt Limit?: Paul Ryan's remarks raise the specter of another bruising budget fight early next year (Time) Mitch McConnell Predicts Debt Ceiling Won't Be Raised Without A Hostage (The Huffington Post) GOP already eyes next fiscal fight: debt ceiling (USAToday)

Banks Are Playing Russian Roulette With Our Financial Security (The Huffington Post)

The Financial Crisis: Why Have No High-Level Executives Been Prosecuted? (The New York Review of Books) Stern Words for Wall Street’s Watchdogs, From a Judge (The New York Times)

Grant Williams Says: This One Chart Shows Exactly Why We Are Where We Are, Folks (Cliff Küle's Notes)

     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.

Monday, December 16, 2013

Monday roundup (12-16-13)

The Eurozone Economy Continues To Recover, But It's Weak And Uneven (The Business Insider)

France: New Recession Feared As Output Falls: Manufacturers in France report another fall in output, as a survey "paints a worrying picture" for the country's economy. (SkyNews) PMI surveys raise fears that France may be back in recession (The BBC) Fresh recession risk in France threatens political crisis: The threat of recession is a major upset for President François Hollande, who has talked up recovery and confidently declared the crisis over by Ambrose Evans-Pritchard (The Telegraph)

Each stage of the eurozone debt crisis has increased the risks Germany faces: The German-led strategy shows little progress and is unlikely to resolve the crisis by Satyajit Das (The Independent)

German economists fear complacent coalition risks national decline: German government attacked for doing nothing to stop the slow erosion of dynamism and for insisting rigidly on further austerity for Europe by Ambrose Evans-Pritchard (The Telegraph)

[In the US] TIPS Wipeout Signals Fed Losing Fight Against Disinflation (Bloomberg)

The Insanely Complicated Volcker Rule Is A Joke (The Business Insider) Volcker Rule won’t save us (The San Diego Union-Tribune)

DEADBEAT GOVERNMENTS (The New Yorker)

KBA realignment includes up to 1,500 job cuts (News & Tech)

615 jobs go at Sharp's solar panel factory at Wrexham (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 that an energy shock may be coming much closer in time than is generally imagined.

Sunday, December 15, 2013

Sunday roundup (12-15-13)

Unemployed told to leave Ireland in desperate move to slash welfare costs (The Independent)

Ireland's bail-out exit: Dead cat bounce (The Economist blogs)

European Union Suspends Trade Talks With Ukraine (The New York Times) In Ukraine, U.S. Sens. McCain [(R-Ariz.)], Murphy [(D-Conn.)] address protesters, promise support (The Washington Post) Why does Ukraine have so many revolutions? (The Economist 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 that an energy shock may be coming much closer in time than is generally imagined.

Saturday, December 14, 2013

Saturday roundup (12-14-13)

Deflation posing major risk to US and Europe economies [according to the Qatar National Bank (QNB Group)] (Arab News) US, eurozone deflation calls for ‘expansionary policy’ [the article begins in a similar manner to the preceding article, but has additional content] (Gulf Times)

'Breakdown of trust' in banks could hamper recovery [in the UK], says Dale: Bank of England chief economist says the "scarring effects of the financial crisis" are likely to weigh on the economy for several more years while companies regain trust in their banks (The Telegraph)

[UK] Housing market at risk of boiling over warns bank chief as prices jump by fastest rate in six years (The Daily Mail)

Holy Land Hit By Heaviest Snowfall In Decades (Agence France-Presse)

Forget the Fed, prepare for Tokyo ‘taper’: Bank of Japan’s policies make Fed’s experiments look almost tame (The Financial Times)

Unofficial Problem Bank list [in the US] declines to 641 Institutions (Calculated Risk blog)

Texas Community Bank, The Woodlands, Texas, Becomes 24th Bank Failure of 2013 [as 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 that an energy shock may be coming much closer in time than is generally imagined.

Friday, December 13, 2013

Friday roundup (12-13-13)

Global economy’s recovery is a sheep in wolf’s clothing: Officials promote government of the debt, by the debt, and for the debt by Satyajit Das (Marketwatch)

No improvement in Eurozone unemployment: Figures show numbers out of work remains at record high above 12 per cent (The Irish Times) Euro zone employment shows no change in third quarter (Reuters)

Bank of England's Mark Carney sees shadow banking in emerging markets as biggest global risk: Mark Carney sees threat to global financial stability from huge amount of assets in informal banking sector in China by Ambrose Evans-Pritchard (The Telegraph)

Bank of America advises China default contracts to hedge debt storm: Chinese bond yields have already risen to the highest in a decade yet markets remain “complacent” about the implications by Ambrose Evans-Pritchard (The Telegraph)

Pope attacks mega-salaries and wealth gap in peace message (Reuters)

Italy hit by wave of Pitchfork protests as austerity unites disparate groups: Demonstrations point to frustration with traditional politics, with minister warning parliament of a country in 'spiral of rebellion' (The Guardian) Italy's "Pitchfork Movement" Mapped (ZeroHedge blog)

Portugal unlikely to make clean exit from bailout program next year: economist (Xinhua)

Spain's debt climbs to 93.4 pct of GDP at end September - C.Bank (Reuters)

Ireland faces more austerity as bailout era ends (The Associated Press) [versus] Irish Austerity Is a Myth, Economists Write (The Wall Street Journal blogs)

Low interest rates to continue well into 2015, Bank of England speech indicates: Chief economist says Bank wants to see prolonged growth, low unemployment and rising real incomes before raising rates (The Guardian)

Canada household debt-to-income ratio hits record high (Reuters)

U.S. wholesale prices point to muted inflation pressures (Reuters) Wholesale Prices in U.S. Fell for Third Month in November (Bloomberg) Plug This Into Your Taper-Meters: Deflation (The Wall Street Journal blogs)

HARRY DENT: America Is Headed Off The 'Demographic Cliff' And Another Crisis Is Near (The Business Insider) Harry Dent vs. Peter Schiff : Inflation/Deflation Debate (Youtube)



Plan to eliminate blight in Detroit may top $1 billion, task force says (The Detroit Free Press)

JP Morgan Chase, the Foreign Corrupt Practice Act, and the Corruption of America by Robert Reich (The Huffington Post)

Big Banks About to Start Booking Second Mortgage Losses They Can No Longer Extend and Pretend Away by Yves Smith (Naked Capitalism blog)

Regulators close bank in Texas ["bringing the number of U.S. bank failures to 24 this year"] (The Associated Press) Texas Community Bank, National Association of The Woodlands TX had a troubled assets ratio of 777.10 percent. (BankTracker)

Budget crunch leads to 900 civilian job cuts at Air Force (Washington 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 that an energy shock may be coming much closer in time than is generally imagined.

Thursday, December 12, 2013

Thursday roundup (12-12-13)

Surprise fall in eurozone industrial output: Worst industrial output figures since height of eurozone crisis show economy is struggling to regain momentum (The Telegraph) Euro zone industrial output drops sharply in October (Reuters) Eurozone industrial output in unexpected slump (The Associated Press)

'Big step' reached in rescue plan for eurozone banks (The BBC) EU agrees ‘bail-in’ rules for deposits: Regulations to oblige banks to use up to 8% of assets before getting bailout funds (The Irish Times)

Ireland exits bailout: Mission not quite accomplished (CNBC) Ireland breaks free of Troika shackles but not safe yet: The "poster child" of EU austerity has taken its medicine stoically but there are risks to going it alone in the market (The Telegraph)

EU Commissioner Olli Rehn speaks of his 'shock' when he first heard of Ireland's bank debt (The Irish Independent)

UK Deficit At £185 Billion, Not £90 Billion As George Osborne Says, Warn MPs (The Huffington 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 that an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 12-12-13)

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 surged by 68,000 to a two-month high of 368,000 in the period ended Dec. 7, exceeding the highest forecast in a Bloomberg survey of economists, Labor Department data 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, December 11, 2013

Wednesday roundup (12-11-13)

Quotes of the Day: [On economic recovery among Eurozone "peripheral" states:] "Ireland is the closest thing to a success story that European leaders have. But it doesn’t really stand up to scrutiny because there’s been a huge fall in the domestic economy and living standards." -- Simon Tilford, chief economist at the Centre for European Reform in London (The New York Times)

"I don't think it makes sense to talk of a success story when an economy is 10 percent smaller than it was and has seen its debt stock relative to GDP rise by 100 percentage points of GDP, which is experiencing mass emigration and mass unemployment at the same time. If you think that's a success it begs the question what failure would have looked like." -- Simon Tilford, quoted on Oct. 16 (Deutsche Welle)

Glacial progress on bank restructuring body through late-night wrangling: Banking union captures conundrum at the heart of the EU project (The Irish Times) EU set for more Cyprus-style bail-ins for troubled banks (CNBC) EU States Move Toward Clash With Parliament on Bank Plan (Bloomberg)

Ukraine unravelling: Now PM seeks €20bn in aid from EU [Reuters via] (The Irish Independent) Ukraine asks EU for €20bn in return for signing Association Agreement (The Independent) Why Ukraine's future lies with the EU, not Russia (CNN) Good-Bye Lenin? Is Ukraine’s ‘Revolution’ Pro-European or Pro-Oligarchic? (New Economic Perspectives blog)

Britain's negotiating hand in Europe has never been as strong before: Events are moving very fast in Europe, overtaking the debate in Britain (The Telegraph)

Rent arrears [UK's] fastest-growing problem, says charity (The BBC)

GM to shut down Australian manufacturing by 2017 (autoblog) GM Holden to Stop Auto Manufacturing in Australia in 2017 (Bloomberg) Two days after its US bailout ended, GM might be about to trigger a shutdown of Australia’s entire car industry (Quartz)

Qantas Airways credit rating downgraded to junk (USAToday) Trapped in a downward spiral, Qantas is fighting for its life as it slashes jobs and seeks to save billions in costs (The Sydney Morning Herald)

America’s Economy Is Officially Inside-Out (The Harvard Business Review blogs)

ALBERT EDWARDS: If People Were Paying Attention To This Obscure Inflation Chart, There Would Be Panic [Over The Prospects of Oncoming Deflation] (The Business Insider)

Budget Deal Is a Tipping Point for the US Economic Recovery (Time)

Absent From the Budget Deal: Benefits for Long-Term Unemployed (The Wall Street Journal blogs) 1.3 million set to lose jobless benefits (CNNMoney) Unemployed Workers Need Benefits, but Republicans Still Say “No.”: Republicans insist that extended jobless benefits hurt workers, but the fact is that unemployment insurance is keeping millions of people afloat and in the job search. (The Daily Beast)

Budget Deal to Ease Spending Cuts Gets Republican Backing (Bloomberg) The War Over Austerity Is Over. Republicans Won. (Mother Jones)

S&P downgrades US growth forecast (CNBC)

The Volcker Rule Will Not Work (Forbes) Will The Volcker Rule Work? (Forbes) The Volcker Rule: How a Simple Idea to Rein In Banks Got Supersized (Bloomberg) The Volcker Rule Is Tough. It's Complicated. Will It Be Effective? (Bloomberg) Wall Street Exhales as Volcker Rule Seen Sparing Market-Making (Bloomberg) Why the Volcker Rule won't solve the problem of Too Big To Fail: Or any problems, really... (The Week)

Soothing Words on ‘Too Big to Fail’ but With Little Meaning (The New York Times blogs)

The good, bad and ugly of the state revenue recovery (The Washington Post blogs)

Why your rent is so damn high: More Americans fork half their salaries over to landlords (Marketwatch)

Avon Plans to Cut 650 Jobs as McCoy Seeks to Trim Costs (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 that an energy shock may be coming much closer in time than is generally imagined.

Tuesday, December 10, 2013

Tuesday roundup (12-10-13)

Youth unemployment could prolong eurozone crisis, Christine Lagarde says: IMF chief warns against prematurely declaring an end to the economic crisis, saying joblessness puts future growth at stake (The Guardian) IMF's Lagarde says euro crisis not solved, demands pre-emptive action from ECB: Christine Lagarde, the IMF's managing director, says it is premature to declare the eurozone crisis over (The Telegraph)

Greek exit from eurozone remains a possibility: Thinktank points out the Greece's public debt – currently at 170% of GDP – is still unsustainably high (The Guardian)

U.S. budget deal reached amid conservative opposition (Reuters) Capitol Leaders Agree to a Deal on the Budget (The New York Times) U.S. Budget Agreement Eases Spending Cuts Over Two Years (Bloomberg)

What if the economic recovery is doomed? (CNN)

Celebrations of Too Big to Fail’s Demise Are Premature by Simon Johnson (Bloomberg)

FDIC Plan to Combat 'Too Big to Fail' Is Flawed (The Fiscal Times)

Orange to Eliminate as Many as 2,950 Jobs in Poland Through 2015 (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 that an energy shock may be coming much closer in time than is generally imagined.

Monday, December 9, 2013

Monday roundup (12-09-13)

Euro zone bailout fund should be allowed to help close failing banks - document (Reuters)

Greek deflation at record and could threaten future recovery from recession (euronews) Greek deflation hits record in November, at -2.9 pct (Reuters)

Ukrainian protesters demand systemic change (The Washington Post)

U.S. government sells final shares in GM; study estimates millions of jobs saved (The Detroit Free Press) Treasury sells rest of GM stock, ends bailout with $10.5-billion loss (The Los Angeles Times) Study: GM, Chrysler bailouts generated 8-to-1 savings (Automotive News) GM, Chrysler federal bailouts were net economic gain, report argues (The Los Angeles Times) CAR Research Memorandum: The Effect on the U.S. Economy of the Successful Restructuring of General Motors (The Center for Automotive Research)

Home mortgage debt sees first rise since recession (Marketwatch)

Skyrocketing rents hit 'crisis' levels (CNBC)

Glass-Steagall Fans Plan New Assault If Volcker Rule Deemed Weak (Bloomberg)

Deflation Is Still Smoldering Under the Economy (The Wall Street Journal blogs)

EADS cuts 5,800 jobs amid massive restructuring (CNBC)

NII to cut [more than 1,400] jobs, expects higher prepaid user losses in Mexico (Reuters)

Birmingham [UK] City Council to cut extra 1,000 jobs (The BBC)

Hawaiian islands take more steps to limit spread of GMO crops (Reuters) Big Island Mayor Signs Biotech, GMO Ban Into Law -- ["The bill exempts the island’s GMO papaya industry."] (The Huffington Post) Mayor Kenoi Signs Bill 113 (Hawaii County Mayor)

Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety) Say "No" to GMOs (Non-GMO Project)

     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.