Monday, June 30, 2014

Monday roundup (06-30-14)

[In US news ...] BNP Paribas's $8.9bn fine is hefty but it's still only a third of the dodgy deals: The French bank's fine over sanctions shows that if you're using the US banking system, make sure you are on safe ground (The Guardian) Guilty plea: BNP Paribas fined $8.8 billion for rogue-regime banking -- ["'Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal,' Asst. U.S. Atty. Leslie Caldwell said."] (The Los Angeles Times)

Feeble Inflation and Lending Persist in Euro Zone (The New York Times)

Eurozone's May Private Sector Loan Contraction Deepens (MNI)

Bulgaria’s Long Run Problems (The Wall Street Journal blogs)

[Off topic:] Sleep as a Competitive Advantage (The New York Times 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 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.

Sunday, June 29, 2014

Sunday roundup (06-29-14)

Central Bankers, Worried About Bubbles, Rebuke Markets (The New York Times)

Central Banks Face Bumpy Road to Normalization, BIS Says (Bloomberg)

BNP Paribas board approves record $8.9B settlement [The Financial Times via] (CNBC)

UK interest rates likely to hit 5% in a decade, says Bank of England deputy: Sir Charlie Bean says borrowing costs will return to pre-recession levels in long term (The Press Association)

Paul Craig Roberts - The Entire U.S. Gold Hoard [In His Personal Opinion] Is Now Gone (King World News) German Gold Stays in New York in Rebuff to Euro Doubters (Bloomberg) Germany gives up plan to repatriate gold from US (The Voice of Russia)

Changing farming practices could cut the intensity of heat waves: No-till farming, which leaves crop debris in place, can protect the next crops. (Ars Technica)

     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.

Saturday, June 28, 2014

Saturday roundup (06-28-14)

For eurozone recovery QE is not the answer: The eurozone, for all the improved mood music, remains on the brink of recession (The Telegraph)

[French Bank] BNP Paribas Said to Plan Guilty Plea Monday in U.S. Probe (Bloomberg) BNP Paribas to pay record $8.9 billion in fines (The Los Angeles Times)

Heavy Rains Flood Season With Extreme Weather: The threat of flooding, hail and tornadoes is expected in regions throughout the nation and June has proven to be a month of weather extremes. (NBC Nightly News with Brian Williams)



Unofficial Problem Bank list declines to 468 Institutions, Q2 2014 Transition Matrix (Calculated Risk)

     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.

Friday, June 27, 2014

Friday roundup (06-27-14)

The Coming Global Generational Adjustment by Charles Hugh Smith (Of Two Minds blog)

Euro-Zone Mood [= Economic Sentiment] Worsens Despite ECB Policy Shift (Dow Jones Newswires)

Juncker to become next European Commission president: Britain opposes appointment with Cameron saying move makes staying in EU ‘harder’ (The Irish Times) UK edges closer to an EU exit as Cameron crushed in bid to block Jean-Claude Juncker's EU leadership (The Independent) Euroskeptic Cameron snubs EU to Britain’s peril (The Globe and Mail of Toronto)

EU signs trade pact with Ukraine, threatens sanctions on Russia (Reuters) Ukraine pact with European Union prompts warning from Russia (FoxNews) EU Faces Challenges as Threat of Russian Sanctions Looms (The Voice of America)

Canada Fin Min Oliver: Deflation a 'Real Risk' In Europe (MNI)

Spanish inflation flat in June; deflation a risk (Marketwatch)

Italian business lobby slashes [country's] growth forecast, urges action (Reuters)

[Meanwhile] Italian Debt Swells to Rival Germany as Bond Yields Slide (Bloomberg)

BoE's Carney says UK economy still relatively vulnerable (Reuters)

Market Structure Nightmare Comes True in [UK bank] Barclays Dark Pools Action (Bloomberg) Barclays' Dark Pool Crisis Another Dent In Confidence (Forbes)

Bulgarian central bank says banking system under attack (Reuters) The mystery of Bulgaria's bank run: Two of Bulgaria's biggest banks have been under pressure this week from insolvency rumors. The country's central bank has alleged there is a malicious media campaign to discredit its banks. (Deutsche Welle)

Millions of U.S. families can't afford their homes (CBSMoneywatch)

Private Sector Debt Still Unmanageable (The Mess That Greenspan Made blog)

Middle class is drowning in debt, hobbling the economy: Without higher incomes, economic stagnation is almost assured (Marketwatch)

Restrained Consumer Spending Curbs U.S. Growth Optimism (Bloomberg)

How the Clintons went from ‘dead broke’ to rich: Bill earned $104.9 million for speeches (The Washington Post)

US Regulators Close Small Bank in Oklahoma (The Associated Press) The Freedom State Bank of Freedom OK had a troubled assets ratio of 8.8 percent [the national average being 8 percent at this time]. (BankTracker) The Freedom State Bank, Freedom, OK, Closed by Regulators (Problem Bank List) ["... the bank was closed at 4 p.m. Friday due to exhaustion of capital funds ..."] (The Associated Press)

     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.

Thursday, June 26, 2014

Thursday roundup (06-26-14)

France set to miss deficit target (CityAM)

French unemployment hits new high despite reforms: Joblessness in the eurozone's second-largest economy, France, has surged to a new high. The latest figures left government officials wondering why recent reforms had done nothing to ease the plight of the labor market. (Deutsche Welle)

Valls’s difficult climb: A stagnant economy underlines how hard it will be for the new prime minister to improve France’s competitiveness (The Economist)

One-in-four SME loans in default at end of last year [in Ireland]: New lending to small business sector static, according to Central Bank report (The Irish Times)

America's roads are running out of money (CBSMoneywatch)

SEC pursuing new enforcement cases against rating firms (Reuters) Are the Rating Agencies About to Get Their Comeuppance? (The Big Picture blog)

Our Credit System a Form of Counterfeiting - Gordon Long (Youtube) Gordon T. Long [biography] (Kitco)



Chicago lays off 1,150 teachers, staff (USAToday)

CBC to lose up to 1,500 more jobs: CBC plans to shift its priority to digital and mobile services as part of its five-year plan, the public broadcaster revealed Thursday. (The Toronto Star)

     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.

Is it a recovery yet? (Weekly report, 06-26-14)

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 fell by 2,000 to a seasonally adjusted 312,000 in the seven days ended June 21, the Labor Department said Thursday." (Marketwatch)

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 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.

Wednesday, June 25, 2014

Wednesday roundup (06-25-14)

US economy shrinks at fastest rate since recession as harsh winter bites: Output as measured by GDP fell at rate of 2.9% in first three months of 2014, but Wall St confident decline only temporary (The Guardian)

U.S. durable goods unexpectedly fall in May (Reuters)

U.S. Banks Warned by OCC Against Return to Riskier Lending (Bloomberg)

Time to End the Era of 'Too Big to Fail' (The Huffington Post) Warren, Lew spar over too-big-to-fail (Marketwatch blogs)

Pesticides linked to bee deaths must be banned, scientists say: Neonicotinoids, fipronil linked to ecosystem damage in new report (The Canadian Broadcasting Corporation) Pesticides linked to mass bee deaths also affect other friendly organisms including birds and fish (The Independent) Pesticides threaten birds and bees alike, study says (Phys) WORLDWIDE INTEGRATED ASSESSMENT ON SYSTEMIC PESTICIDES (The Sierra Club) Worldwide Integrated Assessment (The Task Force on Systemic Pesticides) Common Garden Plants Killing Bees, Report Says (Discovery) Bee-killing pesticides found in 51 percent of “bee-friendly” plants in garden centers throughout U.S., Canada (The Bangor Daily News of Bangor, Maine) Gardeners Beware 2014: Bee-Toxic Pesticides Found in “Bee-Friendly” Plants Sold at Garden Centers Across the U.S. and Canada (Friends of the Earth)

Bank of America to lay off 540 mortgage workers in Charlotte (The Charlotte Business Journal of Charlotte, North Carolina)

BHP sacks 500 iron ore workers (SkyNews) BHP Billiton plans to slash 3,000 more jobs in Australian iron ore division (Mining Technology)

     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.

Tuesday, June 24, 2014

Tuesday roundup (06-24-14)

Quote of the Day:

"The economies of Greece, Italy and Spain may attract the attention, but the time bomb is France. The French rely upon government intently, whereas in Southern Europe they have traditionally ignored government. When France goes, so will the Euro." -- Analyst Martin Armstrong (Armstrong Economics)

S&P's Kraemer: euro zone has much to do to cut debt, boost growth (Reuters)

Can Europe’s low growth and high unemployment go on forever?: Many hedge funds have lost small fortunes betting on the inevitability of European change (The Irish Times)

France, Italy join forces against 'high priests of austerity' (Agence France-Presse) Hollande calls for flexibility in EU budget rules: French President François Hollande called on Tuesday for flexibility in applying EU budget rules, just ahead of a key summit in Brussels on Thursday. (Radio France International) Italy's Renzi calls for Europe to change course on austerity (Reuters)

Spain's public deficit to April rises to 1.16 pct of GDP (Thomson Reuters)

The Emptiness Of Japan's Government Pension Fund (Cliff Küle’s Notes blog)

Study: Recession and Recovery Widen US Wealth Gap [say University of Michigan researchers] (The Associated Press)

For most families, wealth has vanished [say Standford University researchers] (Yahoo! blogs) Wealth Levels, Wealth Inequality, and the Great Recesssion by Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni (Stanford University)

Repeat: Get Your Money Out Of Bond Funds – NOW (Investment Research Dynamics)

Obama’s Latest Betrayal of America and Americans in Favor of the Big Banks: TISA by William K. Black (New Economic Perspectives 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 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.

Monday, June 23, 2014

Monday roundup (06-23-14)

Systemic risk [worldwide] is worse now than in 2008 (The Prudent Bear)

Oil prices spark economic growth concerns [especially in Europe] (CNNMoney)

ECB will link up with bank watchdog to monitor stability risks (Reuters)

ECB Likely to Keep Interest Rates Low Until 2016 (Dow Jones Newswires)

ECB's Constancio warns about overheating of real estate sector (Reuters)

Eurozone growth stutters as French output threatened by oil price risks (CityAM) Euro zone recovery losing steam as France struggles (CNBC)

Let's Talk About How Ugly It Is In France (The Business Insider)

Talks underway [in Ireland] on early loan repayment: Brussels calls for €2 billion budget cut to ‘safeguard and strengthen’ momentum of economic recovery (The Irish Times)

Only one in three Americans has emergency savings: Low wage growth, high household expenses and student loan repayments are making it very difficult for Americans to prioritize emergency savings. (United Press International)

Cosmetics maker Avon Products to cut about 600 jobs (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 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.

Sunday, June 22, 2014

Sunday roundup (06-22-14)

New Government cuts could see a million state jobs go: George Osborne orders 'ambitious' new efficiency drive, to be detailed in the Autumn Statement, for savings and job cuts stretching deep into the next parliament (The Telegraph)

5 years after the Great Recession [in the US]: Where are we now? (The Los Angeles Times)

MARK CUBAN: 'The Student Loan Bubble Is Going To Burst' (The Business Insider) Mark Cuban: 'I Think the Student Loan Bubble Is Going to Burst': The Dallas Mavericks' owner sounds the alarm about the $1 trillion of student debt owed. (Inc)



     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.

Saturday, June 21, 2014

Saturday roundup (06-21-14)

ECB’s chief Draghi: time for more integration [in Draghi's words, “economic policy cannot be a purely national matter”] (The Associated Press) EXCLUSIEF Mario Draghi: "Meer macht naar Brussel" ["More power to Brussels"] (De Telegraaf)

Libération: Greece Selling to Lighten Debt (Greek Reporters) La Grèce vend tout, les Grecs vent debout: Ports de plaisance par dizaines, autoroutes au kilomètre, aéroports à gogo et services publics au kilo: sous la pression de la troïka, Athènes solde des pans entiers du pays et se met à dos la population. (Libération)

Pope lambasts mobsters, says mafiosi 'are excommunicated' (Reuters) Pope Francis attacks 'evil' mafia in 'Ndrangheta base (The BBC)



Tens of thousands march in London against coalition's austerity measures: An estimated 50,000 people in London addressed by speakers, including Russell Brand, after People's Assembly march (The Guardian)

[In the US] RadioShack sinks below $1 for first time ever (Marketwatch)

Unofficial Problem Bank list declines to 488 Institutions (Calculated Risk blog)

Valley Bank, Fort Lauderdale, FL, Closed by Regulators, 11th Banking Failure of 2014 [as posted here last night] (Problem Bank List)

Growing student loan debt threatens economic recovery (The Times of Trenton, New Jersey)

White House task force charged with saving bees from mysterious decline: President Obama orders research and strategies to try to stop the alarming decline of honeybees and other pollinators (The Guardian)

     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.

Friday, June 20, 2014

Friday roundup (06-20-14)

25 Shocking Facts About The Earth’s Dwindling Water Resources (The Economic Collapse blog) The Do’s and Don’ts of Water Usage (modern farmer)

IMF Urges ECB to Fight Low Inflation With Asset Purchases (Bloomberg)

Italy's UniCredit, Banco Popolare prolong talks on sales of bad debt (Reuters)

Finland plans 1.1-bn-euro stimulus package (Agence France-Presse)

[UK] Government borrows £1bn more than expected in May: Analysts are concerned by a shortfall in tax receipts as government struggles to bring deficit in line with target (The Telegraph) Higher UK state borrowing hits struggle to cut deficit: Coalition's deficit reduction stalls when falling unemployment and higher tax receipts should be helping state finances (The Guardian)

Ukraine in talks with creditors on possible debt restructure - IIF (Reuters)

China Property Failures Seen as $33 Billion in Trusts Due (Bloomberg)

Is it possible that Americans may not recover from the recession? (Deseret News)

After 6 Years of Unprecedented Central Planning, the Economy Is More Fragile Than Ever by Charles Hugh Smith (Of Two Minds blog)

Housing Market Falters Amid Rising Prices, Lower-Paying Jobs (Bloomberg)

Fed: Q1 Household Debt Service Ratio at Record Low (Calculated Risk blog)

BofA asks Holder to meet with its CEO - sources (Reuters)

End the era of banks that are 'too big to fail': Senators have proposed the 21st Century Glass-Steagall Act (Consumer Reports)

40 banks late on their TARP bailout payments (USAToday)

US Regulators Close 2 Banks in Illinois, Florida (The Associated Press)

Valley Bank of Moline IL had a trouble assets ratio of 160.7 percent. (BankTracker) Valley Bank, Moline, IL, Closed by Regulators, Tenth and Largest Bank Failure of 2014 (Problem Bank List)

Valley Bank of Fort Lauderdale FL had a trouble assets ratio of 188.7 percent. (BankTracker)

Real Conversations: Chris Whalen On Housing, Banks, and Economic Risks (Youtube)



     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.

Thursday, June 19, 2014

Thursday roundup (06-19-14)

The Global Water Crisis Will Shake Humanity To Its Core [Charts] (The Business Insider)

‘Damaging deflation’ threatens euro zone: EY (CNBC)

Be ready for interest rate rises, Bank of England insider warns mortgage payers: Monetary policy committee external member signals end to ultra-cheap borrowing owing to stronger-than-expected growth (The Guardian)

Argentina's last debt card is a doomsday scenario (The Associated Press)

40 maps that explain food in America by Ezra Klein [former Wonkblogger for The Washington Post] and Susannah Locke (Vox)

The death of the American mall: Once-proud visions of suburban utopia are left to rot as online shopping and the resurgence of city centres make malls increasingly irrelevant to young people (The Guardian)

Asciano to cut 500 jobs in latest round of cost cutting: Rail operator the latest large company to axe staff, following a string of major Australian job losses (The Guardian)

     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.

Is it a recovery yet? (Weekly report, 06-19-14)

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 declined by 6,000 to 312,000 in the week ended June 14, the Labor Department said Thursday." (Marketwatch)

Initial jobless claims fall; total benefit recipients at 7-year low (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 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.

Wednesday, June 18, 2014

Wednesday roundup (06-18-14)

The world is still hooked on fossil fuels: From Russia to Iraq, the demand for gas and oil is fuelling an increasingly violent global power struggle (The Independent)

In the Euro Zone, Recession Is Not Quite Over, Economists Say (The New York Times) Europe May Be in a Recession (Still) (The New York Times) Euro-zone exit from recession not confirmed: CEPR (Marketwatch)

IMF urges ECB to take further steps to fight deflation risk - source (Reuters)

IMF says Italy's recovery fragile, needs "bold, quick" reforms (Reuters)

EU Commission warns Italy over late debt repayments (Reuters)

The Bank of England drops more hints that it’s itching to hike rates (Quartz)

Japan May exports disappoint, cloud growth outlook (Reuters)

Argentines want debt deal as economic woes pile up (Reuters)

U.S. Postal Service: ‘The Financial Hole We’re In Is So Deep’ (The Wall Street Journal 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 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.

Tuesday, June 17, 2014

Tuesday roundup (06-17-14)

Deflation: The Big Risk of Big Banks’ Risk-Free Gains (Daily Reckoning)

Economists Query Whether Euro Zone Has Emerged From Recession: Apparent Recovery Has Been Weak, While Jobs Market Improvement Has Been Slight (The Wall Street Journal)

France's State Auditor Warns on Deficit Target: French Government Has Twice Pushed Back its Deficit Reduction Target (The Wall Street Journal)

Italian PM seeks austerity relief in return for Juncker backing: Matteo Renzi emerges as key figure in settling row over next head of European commission (The Guardian)

Archbishop of Canterbury warns banks are still ‘too big to fail’ (The Financial Times)

Why Japan's Debt Markets Are Frozen (Bloomberg)

The BoJ's balance sheet is about to go parabolic (Sober Look blog)

Measuring [US] Recovery? Count the Employed, Not the Unemployed (The New York Times)

SunTrust to pay nearly $1 billion for mortgage origination practices (Reuters)

The Social Security cash crunch Congress can't ignore (CNNMoney)

Why The Fed's New Vice Chairman Will Be A Disaster For the U.S. Economy (Forbes)

Support builds for new Glass-Steagall Act: Advocates say a wall between commercial and investment banking would protect consumers (Consumer Reports)

[UK's] Morrisons to cut 2,600 management jobs in stores: Supermarket says move will be part of overhaul aimed at altering ratio of bosses to floor staff and way branches are run (The Guardian) [Anticipated cuts had been around 2,000, as posted earlier here] (Economic Signs of the Times 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 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.

Monday, June 16, 2014

Monday roundup (06-16-14)

World economic system is 'madness', puts money ahead of people, Pope Francis says (Agence France Presse) Pope Francis Warns The Global Economy Is Near Collapse (The Huffington Post) Entrevista al papa Francisco: "La secesión de una nación hay que tomarla con pinzas": "Nuestro sistema económico mundial ya no se aguanta", dice el Obispo de Roma | "No soy ningún iluminado; no traje bajo el brazo ningún proyecto personal", asegura | "Descartamos toda una generación por mantener un sistema que no es bueno", opina respecto a los jóvenes parados (LaVanguardia)

There are not enough resources to support the world's population: The world's population is now well over seven billion and growing. We have reached a stage where the amount of resources needed to sustain our population exceeds what is available, argues Professor John Guillebaud from University College London. (The Australian Broadcasting Corporation)

Eurozone inflation drops to five-year low of 0.5%: European Central Bank faces tough task in preventing Europe from sliding into a damaging deflationary spiral (The Guardian)

Europe faces the horrors of its own house of debt: The most likely trajectory is a long period of slow growth, low inflation (The Financial Times)

Germany, France Seek Eased Euro Deficit Rule Amid Austerity (Bloomberg)

Russia cuts off gas to Ukraine as Kiev orders border secured (Reuters) Russia cuts gas supply to Ukraine after deadline passes without deal (The Associated Press) Don’t Delude Yourself: The Ukraine Crisis Is Far From Over (CarnegieEurope)

BoE confounded by low UK productivity (CNBC)

Into the shadows [in China]: risky business, global threat: The first of an FT series investigates China’s precarious shadow banking system (The Financial Times)

China Surpasses U.S. as Largest Corporate Debt Issuer (The New York Times blogs)

IMF Cuts U.S. Growth Outlook, Sees More Scope [= Longer Duration] for Zero Rates (Bloomberg) IMF cuts U.S. growth outlook, says full employment years off (Reuters)

Wall Street and A Dirty Little Secret [Regarding the Unemployment Rate] (Calculated Risk blog)

Groups are paying big money to stop NY lawmakers from passing law that would require GMO food labels: Trade organizations, farm groups and corporate giants such as Coca-Cola and Kraft have spent millions on lobbyists and campaign contributions to defeat the bill. They say there's no proof GMOs are harmful, and that the labels would increase food-handling costs. Supporters of the bill say consumers have a right to know what's in their food. (The New York Daily News)

Big Food Declares War On Vermont Food Labeling Law (The Business Insider)

Ben & Jerry's Renames Flavor [to Food Fight] As Part Of GMO Battle -- ["Ben & Jerry's is in the process of transforming all its flavors to non-genetically modified ingredients."] (The Associated Press) Food How Ben & Jerry's says goodbye to GMOs (The Burlington Free Press) Food Fight Fund Vermont (FoodFightFund)

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 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.

Sunday, June 15, 2014

Sunday roundup (06-15-14)

The coming 'tsunami of debt' and financial crisis in America: Forces that caused the world economy to collapse, including income inequality and debt, are again in action, and could drag corporations down in their wake (The Guardian)

Record number of Americans draining retirement accounts (CBSNews)


Monarch butterfly decline linked to spread of GM crops [June 4] (Canadian Broadcasting Corporation) Monsanto vs. the monarchs: The fight to save the world’s most stunning butterfly migration: North America is on the verge of losing one of its most spectacular phenomena, Chip Taylor tells Salon [June 1] (Salon)

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 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.

Saturday, June 14, 2014

Saturday roundup (06-14-14)

Too Big to Fail and Getting Bigger (Bill Moyers & Company) Too Big to Fail and Getting Bigger: Our banks are larger than before the 2008 crash and they're still living dangerously. (Vimeo)

Too Big to Fail and Getting Bigger from BillMoyers.com on Vimeo.

The Nation’s Economy, This Side of the Recession (The New York Times)

Unofficial Problem Bank list declines to 494 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 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.

Friday, June 13, 2014

Friday roundup (06-13-14)

12 Numbers About The Global Financial Ponzi Scheme That Everyone Should Know (ZeroHedge)

The US recovery has been a disaster; the eurozone's has been much worse (Vox)

European Commission endorses Telegraph view of the euro by Ambrose Evans-Pritchard (The Telegraph blogs)

Spain's public debt climbs to record high [EFE via] (FoxNews)

Spain Props up Soccer Amid Crushing Austerity (The Associated Press)

Bank of England hints at possible rate rise this year (The BBC)

China housing slump sparks fears for economy (The Associated Press) China No-Money-Down Housing Echoes U.S. Subprime Loan Risks (Bloomberg)

Shaky Consumer Sentiment [in the US] a Hurdle to Growth Pickup: Economy (Bloomberg) Consumer sentiment at three-month low (Marketwatch)

Elizabeth Warren, Not Hillary Clinton, Should Be the Next President of the United States (The Huffington Post)

Delhaize to cut 2,500 Belgian jobs to tackle falling margins (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 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.

Thursday, June 12, 2014

Thursday roundup (06-12-14)

IMF sounds global housing alarm [The Financial Times via] (CNBC)

Recession linked to more than 10,000 suicides [across Europe and North America] [HealthDay via] (CBSNews)

UK's Osborne gives Bank of England new powers to cap mortgages (Reuters)

Oil jumps as Iraq violence raises supply fears (The Associated Press) Iraq crisis: oil spikes to three-year high of $112 a barrel: Global recovery at risk from oil supply shock as violence threatens Iraq's oil industry (The Telegraph) Iraq’s civil war threatens structure of global energy supply for years: Brent crude jumped above $113 a barrel as the Islamic State of Iraq and the Levant raced towards Baghdad by Ambrose Evans-Pritchard (The Telegraph)

U.S. Economic Recovery Looks Distant as Growth Stalls (The New York Times) U.S. Economy’s First-Quarter Contraction Could Be Even Worse Than You Thought (The Wall Street Journal blogs)

May retail sales miss expectations, signal slow recovery: While auto sales were strong, growing an impressive 1.4 percent, sales across grocery, department and clothing stores were weak (United Press International)

Eric Cantor's Opponent Beat Him By Calling Out GOP Corruption (Republic Report) 'Stunning': Reactions To Eric Cantor's Election Loss In Virginia (National Public Radio blogs) CANTOR LOSES, AND WASHINGTON GOES APE (The New Yorker blogs) Why Eric Cantor's Big Loss Isn't Really That Surprising (ABCNews)

Unchosen: The media finally gets a story worthy of the hyperbole of the 24-hour news cycle when an upstart Tea Party member defeats incumbent Eric Cantor. (The Daily Show with Jon Stewart)



Unchosen - Yes, Virginia, There Is a Cantor Loss: The surprising defeat of Republican incumbent Eric Cantor by an obscure Tea Party activist has the media searching for its broader meaning. (The Daily Show with Jon Stewart)



Anat Admati on Seeing Through ‘The Banker’s New Clothes’ (Bill Moyers & Company) Seeing Through "The Banker's New Clothes:" Anat Admati at TEDxStanford (Youtube)



Preview: Too Big to Fail and Getting Bigger (Bill Moyers & Company) Preview: Too Big to Fail and Getting Bigger: Our banks are larger than before the 2008 crash and they're still living dangerously, economist Anat Admati tells Bill. (Vimeo)

Preview: Too Big to Fail and Getting Bigger from BillMoyers.com on Vimeo.

[In the UK] Kirklees Council to cut up to 1,400 jobs (The Huddersfield Daily Examiner)

Wirral Council to axe 500 jobs in bid to save £27m (The Liverpool Echo)

     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.

Is it a recovery yet? (Weekly report, 06-12-14)

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

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

"Initial jobless claims rose by 4,000 to a seasonally adjusted 317,000 in the seven days ended June 7, the Labor Department said Thursday." (Marketwatch)

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 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.

Wednesday, June 11, 2014

Wednesday roundup (06-11-14)

World Bank Cuts Global Growth Forecast After ‘Bumpy’ 2014 Start (Bloomberg)

Leader in Austerity Push Appointed Head of Greek Central Bank (The New York Times)

Housing boom poses main risk to UK stability, warns Broadbent: Incoming Bank of England deputy governor Ben Broadbent expresses concern that rising house prices will encourage more households to take out “risky” mortgages (The Telegraph)

China ramps up spending to spur economy, central bank sees stable policy (Reuters)

Japan to keep printing money for years to come, so learn to enjoy it: The Bank of Japan will have to mop up the entire issuance of public debt for years to come, covering the budget deficit with printed money by Ambrose Evans-Pritchard (The Telegraph)

U.S. Public Pension Shortfalls Exceed $1 Trillion (Bloomberg)

U.S. Government Has Nearly As Much Debt As The World Has Wealth (Cliff Küle’s Notes blog)

[Majority Leader of the US House of Representatives] Eric Cantor Defeated by David Brat, Tea Party Challenger, in G.O.P. Primary Upset (The New York Times) Who Is David Brat? Meet the Economics Professor Who Defeated Eric Cantor (The Wall Street Journal) Haunted House: Eric Cantor’s surprise defeat is a warning to all Republicans: Be very afraid. (Slate)

[France's] Bouygues Telecom to cut [1,516] jobs after sale talks fail (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 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.

Tuesday, June 10, 2014

Tuesday roundup (06-10-14)

ECB creating ‘dangerous’ bubbles: German think tank (CNBC)

Greece: IMF pleased with progress, worried on national debt, bad private loans (The Associated Press) IMF warns of reform fatigue holding back Greece (Reuters)

Don't threaten me: Merkel lashes out at Cameron after he warned Britain could leave EU if Juncker becomes Brussels chief (The Daily Mail) Labour opposes Jean-Claude Juncker as next European commission president: After Tory pressure to clarify stance, party says its MEPs will try to block appointment as he would 'make reform of EU harder' (The Guardian) Wise Men warn on dangerous delusions of Brexit: EU exit would pose a grave threat to car industry and the City, warns report for Centre for European Reform by Ambrose Evans-Pritchard (The Telegraph) There is life after Europe, but let us stop the triumphalism by Ambrose Evans-Pritchard (The Telegraph blogs)

Debt problems are rising [in the UK], Money Advice Trust charity says (The BBC)

If It’s Happening In China, It For Sure Happens In London and NYC (Investment Research Dynamics)

Will we [in the US] ever fully recover from the Great Recession? (The Washington Post blogs)

4 in 10 millennials overwhelmed by debt: Study (CNBC)


Public Schools Are Hurting More in the Recovery Than in the Recession (FiveThirtyEight)

     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.

Monday, June 9, 2014

Monday roundup (06-09-14)

ECB's Noyer - Falling inflation increases deflation risk in Europe (Reuters)

El-Erian: The Fed Won’t Always be there for the Markets (FoxBusiness)

     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.

Sunday, June 8, 2014

Sunday roundup (06-08-14)

Wall Street Crime and Misdeeds (Vimeo)

Wall Street Crime and Misdeeds from CSRL on Vimeo.

The Great Gatsby delusion: F Scott Fitzgerald’s masterpiece, the emblematic novel of 'the American dream’, is as misunderstood as that clichéd phrase (The Telegraph)

65 Things We Know About NSA Surveillance We Didn’t Know a Year Ago (Gizmodo)

     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.

Saturday, June 7, 2014

Saturday roundup (06-07-14)

Larry Summers on "House of Debt" [a book by Atif Mian and Amir Sufi] (Calculated Risk blog)

Unofficial Problem Bank list declines to 495 Institutions (Calculated Risk blog)

Australia Post to axe 900 jobs (The Sydney Morning 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 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.

Friday, June 6, 2014

Friday roundup (06-06-14)

Interest rates are entering the twilight zone: Central banks are only storing up problems for the future by sticking to printing money (The Telegraph)

Activist Draghi rings alarm bells in Germany (Reuters)

IMF tells Britain to act on housing bubble risk (Reuters) IMF Says U.K. Must Act to Curb Risk From House Prices (Bloomberg) IMF warns Britain to take steps against a possible housing price bubble - economy (euronews)



Another Great Recession level fades as U.S. passes employment peak (Marketwatch blogs) US jobs back above pre-recession peak, but what kind are they now?: US employers added 217,000 jobs in May, pushing the total above the number for 2008. But the service sector led the climb, while factory and manufacturing jobs are still below pre-recession levels. (The Christian Science Monitor) Don't Get Too Excited About the New Jobs Report: The U.S. economy has now recovered the jobs lost during the recession. But there is still a long way to go. (National Journal) The U.S. Economy Finally Hit a Historic Milestone—and It Doesn't Matter: More jobs don't necessarily mean more growth. (The Atlantic)

The Purchase of Our Republic (Of Two Minds blog)

David Cay Johnston: The Perils Of Our Growing Inequality (Youtube)



Stephen Colbert exults in Colbert-crowning study (The Washington Post blogs) Colbert Is Ivy League TV Compared to Fox News: Don’t be shocked by a new study showing Stephen Colbert informs viewers about the issues better than regular news sources. Political comedy is effective—and draws a coveted demographic. (The Daily Beast) Stephen Colbert’s Civics Lesson: Or, how a TV humorist taught America about campaign finance (The Annenberg Public Policy Center of the University of Pennsylvania) Why Stephen Colbert Should Be Proud & The Media Should Be Ashamed (Youtube)



     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.

Thursday, June 5, 2014

Thursday roundup (06-05-14)

Quote of the Day:

"The single biggest threat to the global economy is the threat of deflation." -- CNBC commentator Ron Insana (CNBC)

Draghi brings out everything but the ECB bazooka (Marketwatch) ECB Takes Raft of New Steps to Avoid Deflation (The Associated Press) ECB hurls cash at euro zone economy, says not done yet (Reuters)

Less than zero: Europe introduces negative interest rates to save its economy (The Washington Post blogs) Draghi Takes ECB Deposit Rate Negative in Historic Move (Bloomberg) Mario Draghi takes historic gamble with negative rates but still stops short of QE: ECB's revolutionary move aims to force banks to pay a charge if they continue to park money for safe-keeping in Frankfurt by Ambrose Evans-Pritchard (The Telegraph) ECB cuts rates to buoy eurozone economy - economy (euronews)



ECB's justified action will help but is no panacea for eurozone deflationary ills: European banks reluctance to lend is not for lack of money but preference for bolstering balance sheets instead of making loans (The Guardian blogs) Why negative interest rates won't jumpstart Europe's economy: The European Central Bank has resorted to a seemingly extreme measure, but it's not nearly extreme enough to revive the euro zone (The Week) Why Negative Rates Won't Work In The Eurozone (Forbes)

German ECB Critics Condemn Draghi Rate Cut as Pandering to South (Bloomberg) Southern Europe needs deflation: IFO Institute: Hans-Werner Sinn, President at the Ifo Institute for Economic Research, says that southern Europe needs deflation to improve its international competitiveness, and that ECB policies could slow this process. (CNBC)



Joaquin Almunia: Eurozone Has Growth Problem and no Credible Strategy to Cure Malaise (International Business Times)

Jeroen Dijsselbloem: Greece May Need Another Bailout (International Business Times)

Bank of England keeps rates at record low, split seen coming (Reuters)

Management changes at ailing Morrisons could see 2,000 jobs axed: Morrisons had said it had no plans for widespread redundancies, but [the British grocer] is under pressure to cut costs to fund planned price cuts (The Guardian)

VeriFone profit tops estimates, to cut 500 jobs (Marketwatch)

The Colbert Report's Unintended Educational Value: Researchers find that The Colbert Report is more informative than any other news show. (Comedy Central's The Colbert Report)



     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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.