Monday, August 11, 2014

Monday roundup (08-11-14)

Quote of the Day:

"For Euroland, the big picture is that the economy is in its seventh year of depression." -- Carl Weinberg, founder of and chief economist at High Frequency Economics. (The Business Insider)

Fed's Fischer calls U.S. and global recoveries disappointing (Reuters) Federal Reserve's vice-chair warns of long-term damage from recession: Stanley Fischer warns lower productivity growth and labour force participation rates are now permanent features of the economy (The Guardian)

A Global Financial Guru Who Predicted the Crisis of 2008 Says More Turmoil May Be Coming: Raghuram Rajan, the governor of India's central bank, fears supereasy money from the world’s central banks is inflating assets and encouraging bad investments (Time)

The Eurozone’s So-Called Recovery Is a Bust (The Fiscal Times)

Sanctions will deepen euro area deflation (CNBC)

Growth and Inflation In America: Why Deflation Is Going to Burst Through (The Market Oracle)

This Stanford Economist Has Obama's Attention — And It's Causing A Wall Street Freak-Out (The Business Insider) When She Talks, Banks Shudder (The New York Times) We’re All Still Hostages to the Big Banks by Anat R. Admati [Aug. 23, 2013] (The New York Times) Seeing through "the banker's new clothes": Anat Admati at TEDxStanford [May 20] (Youtube)

[Counter view:] The era of the mega-bank is over - it's time to let them fail: By seeking to beef up capital to prevent failure, regulators only further reduce the propensity to lend - just look at the devastating effect this is having on Europe (The Telegraph)

Postal Service loses $2 billion in second quarter (Reuters)

For largest U.S. companies, jobs growth has lagged profits, revenues (Reuters)

As "Housing Recovery" Fizzles A New Scheme Emerges: Boost FICO Scores By Changing The Definition (ZeroHedge blog)

California Drought Transforms Global Food Market (Bloomberg)

L.A. Faces $15 Billion Bill as Pipes Spring Leaks: Cities (Bloomberg)

Print Is Down, and Now Out: Media Companies Spin Off Newspapers, to Uncertain Futures (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 exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

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