Sunday, August 31, 2014

Sunday roundup (08-31-14)

Quote of the Day:

"Yes, eventually we’ll have a collapse or deflationary bust in asset markets. That’s inevitable. Printing money can postpone such a collapse but eventually the bust will occur. Every inflation, whether consumer price inflation or asset inflation, eventually comes to an end." -- Marc Faber, editor and publisher of The Gloom Boom & Doom Report (Global Gold)

World Inflation Makes 56-Month Low (GaveKal Capital blog)

[David] Stockman - Unprecedented Global Financial Wipeout Is Coming (King World News)

European bank officials weigh QE 'shock and awe' (CNBC) Investors' eyes pinned on ECB as Europe's health deteriorates (Reuters) Abenomics, European Style by Nouriel Roubini (Project Syndicate)

Germany must lead the way to eurozone growth: The country's establishment doesn’t seem to have grasped that what is good for one part of the system is not necessarily good for the system as a whole (The Telegraph)

IMF approves bailout payment to Ukraine (Marketwatch)

Is the Recession Really Over [in the United States]? (The Huffington Post)

Slow wage growth threatens California economic recovery, report finds (The Los Angeles Times)

Report: Recession isn’t over for many NC workers (The Charlotte Observer of Charlotte, North Carolina)

     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, August 30, 2014

Saturday roundup (08-30-14)

Eurozone anxiety overshadows EU summit (The BBC)

Eurozone fears of stagnation grow as France and Italy suffer: A stubborn lack of growth, rather than collapse, is now the enemy. But agreement is elusive (The Observer)

Greece looks to debt relief in EU-IMF talks (Agence France Presse)

Why Italy’s stagnation could be the future for the entire eurozone: Monetary reform alone can’t kickstart the European economy. It needs something more radical (The Guardian)

This pope means business: The wildly popular Francis is more than a pontiff of the people. He’s an elite manager who’s reforming the Vatican’s troubled finances. (Fortune)

Brazil's economy falls into recession, latest figures show (The BBC) ["'It's another headwind for Argentina, at exactly the wrong time,' said Neil Shearing, chief emerging markets economist at Capital Economics."] (The Associated Press)

[In the United States,] Unofficial Problem Bank list declines to 439 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, August 29, 2014

Friday roundup (08-29-14)

Eurozone gripped by deflation fears as inflation rate hits five-year low: ECB chief Mario Draghi is under pressure to act but experts say immediate measures are unlikely (The Guardian)

Disappearing euro zone inflation set to heighten ECB concerns (Reuters) Euro Inflation Slows as Draghi Hints at More ECB Stimulus (Bloomberg)

Eurozone Unemployment Holds at 11.5% as Inflation Nears Five Year Low (International Business Times)

Divisions Grow as a Downturn Rocks Europe (The New York Times)

The Eurozone Is A Growing Problem For The U.S. Economy (Forbes)

Don’t expect Germany to be Europe’s saviour – its economy is far weaker than it looks (The Conversation) German Finance Minister Tells EU Leaders: Free Money Party's Over (ZeroHedge blog)

Italy's Renzi tries new reform plan as economy sinks (Reuters)

It's confirmed: Italy is back into recession (Marketwatch)

Italy's unemployment rate rises to 12.6% (Marketwatch)

Italy's CPI has first yearly fall since 1959 (Marketwatch)

The billion-dollar fall of the house of Espirito Santo [in Portugal] (Reuters)

Japan’s Inflation Unchanged, Highlighting BOJ’s Challenge (Bloomberg) Japan economy stalls as incomes, spending languish (The Associated Press) Japan's economic revival is in jeopardy (CNNMoney)

US consumers pare spending as income growth slows (Reuters)

Who's minding public pensions? (The Los Angeles Times)

Too Big To Fail Banks Have Paid $251 Billion in Fines For Sins Committed Since 2008 (Forbes)

Detroit secures $275 million in bankruptcy exit financing (Detroit Free Press)

What Labor’s Win at Market Basket Means for Your Job Security: The victory at a New England grocery chain might seem like a fluke. But economic trends show that workers may be finally getting some leverage. (Time) A Grocery List of PR Lessons from the Market Basket Saga: Don’t Do What They Did (Boston)

Tragedy-hit Malaysia Airlines to lose 6,000 jobs in bold revamp (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, August 28, 2014

Thursday roundup (08-28-14)

Get Ready For Two More Dismal Economic Data Reports Out Of Europe [on inflation and employment] (The Business Insider)

That sinking feeling (again): If Germany, France and Italy cannot find a way to refloat Europe’s economy, the euro may yet be doomed (The Economist)

Italy May Sell $7 Billion in Eni, Enel Stakes to Cut Debt (Bloomberg)

Italy’s Top Banks Seeking Up to $36 Billion From ECB (Bloomberg)

Spanish consumer prices drop again in August (Agence France Presse)

Russian Recession Risk Seen at Record High Amid Sanctions (Bloomberg) Western Sanctions And Rising Debts Are Already Strangling The Russian Economy (Forbes)

Federal government [in Canada is] on track to cut 35,000 public service jobs [of which nearly 26,000 have already been eliminated] (The Ottawa Citizen)

Deeper Argentine Default Pain Looms as Cash Concerns Grow (Bloomberg)

Survey: Americans' pessimism on economy has grown (The Associated Press) Most Americans Think The Recession Permanently Damaged The Economy: Survey (The Huffington Post)

This is why it feels like the recession never ended (The Washington Post blogs)

2008: Worse than the Great Depression? ["'The solvency of the whole banking system was in question. This was a crisis that went beyond anything that our academic Fed chair had ever dreamed of,' said David Jones, a former Fed economist"] (CNNMoney)

Washington Recaptured by Simon Johnson [not by the British this time, but by "very large banks"] (Project Syndicate)

So Did Anyone Lose Any Money At MF Global? (Dealbreaker)

Wall St. Prosecutors Bare Their Teeth, but Still Lack Bite (The New York Times blogs)

Warring Demoulas Billionaires Finally Settle Family Score With Market Basket Deal (Forbes) Arthur T. Demoulas Returns to Market Basket (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.

Is it a recovery yet? (Weekly report, 08-28-14)

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 claims edged down by 1,000 to 298,000 in the seven days ended Aug. 23 and remain near an eight-year low, the Labor Department reported 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.

Arthur T. Demoulas Returns to Market Basket

Market Basket back in Arthur T.'s hands: Shareholders approve $1.5B bid, ending nearly six-week stalemate -- [Daniel Korschun, a Drexel University business professor, said: "Never, to my knowledge, have employees, customers, and suppliers joined forces to challenge a board of directors in this way."] (The Fitchburg Sentinel & Enterprise of Fitchburg, Massachusetts)

Artie T. thanks supporters [WCVB TV via] (Youtube)



TRANSCRIPT OF ARTHUR T. DEMOULAS'S ADDRESS TO SUPPORTERS
OUTSIDE MARKET BASKET HEADQUARTERS IN TEWKSBURY, MASSACHUSETTS

How are you all doing today? Thank you. Thank you all so very, very much. You know, I look out here, and you're all so very, very special. And all I can say: It's great to be back together again.

You know, I'll tell you, you know, words cannot express how much I appreciate each and every one of you. And words cannot express how much I missed you. And words cannot express how much I love you. You know, you are simply the best. Seeing all of you here today looks like a little piece of heaven on earth.

You know, as I stand here before you, I am in awe of what you have all accomplished and the sterling example you have all set for so many people across the region and across the country. You know, as I stand here, there's very little that I could ever add to your brilliant words, your extraordinary display of loyalty, and the power of your enduring human spirit over the past six weeks. 

There's been so much said over the past several weeks by so many different people from so many walks of life, from professors at prestigious universities and institutions to business analysts from around the globe to CEO's of major corporations to journalists from publications across the nation. But the words and the most meaningful words, the most eloquent words, the words which resonated throughout this entire region and across the country were the words spoken by all of you, the associates of Market Basket, the customers of Market Basket, and the vendors of this Market Basket organization.

You and only you have taught the educators, you have taught the professors, the analysts, and the CEO's that the workplace here at Market Basket is so much more than just a job.

You've taught everybody that here at Market Basket is a place where respect and honor and dignity is a way of life.

Your words were supported by your actions from deep within your hearts, and it was your voices that blared through the televisions, the radio, and in newspaper print to trigger this insurgence, and in that act, you displayed to everyone your unwavering dedication and desire to protect the culture of your company.

You have demonstrated that in this organization here at Market Basket everyone is special. You have demonstrated that everyone here has a purpose. You have demonstrated that everyone has meaning and no one person is better or more important than another, and no one person holds a position of privilege, whether it's a full-timer or a part-timer, whether it's a sacker or a cashier or a grocery clerk or a truck driver or a warehouse selector, a store manager, a supervisor, a customer, a vendor, or a CEO -- we are all equal.

We are all equal, and by working together, and only together, do we succeed.

You proved, all of you, that your grassroots effort to save your company and harness thousands and thousands of people was not about a family conflict or a Greek tragedy, but more about fairness, justice, and a solid moral compass that unites the human soul.

I've always believed that we are born into this world at a certain time and at a certain place to be with certain people for a reason and a purpose. Everyone has a destiny, and because of you, I stand here with a renewed vigor and a sense of purpose, and may we always remember this past summer, first as a time where our collective values of loyalty, courage, and kindness for one another really prevailed, and in that process, we just happened to save our company.

I want you to please know as you held signs in the hot summer sun, as you stood waving flags in the pouring rain, as you sacrificed your paychecks, as you shared your lunch with your fellow protesters, as you gave generously to those who had less than you, the public watched in awe and admiration because you empowered others to seek change.

You all, each and every one of you and thousands and thousands more that aren't here today, you have demonstrated to the world that it is a person's moral obligation and social responsibility to protect a culture which provides an honorable and a dignified place in which to work. A culture originally established by my beloved father, T. A. Demoulas, without whom we would not have the foundation upon which this company was built, a foundation which all of you fought to preserve for the past six weeks. My father would be so very proud of each and every one of you and especially proud in the pride that you all possess. I love you all.

Let's take that pride, and let's move forward doing what we love to do: working together and serving our devoted customers. We'll get to work, and we'll have lots of fun. 

I look at you all and I can't thank you enough: On behalf of my mother, my wonderful wife Maureen and my children, my three sisters -- Frances, Glorianne, and Caren -- and my brother in laws -- Mike, Bobby, and Joe -- and my sisters' families, my nieces and my nephews, we extend to each and every one of you our profound gratitude and our heartfelt love.


We realize that thank you is not enough, and yet thank you is all that we can really say. We just hope that the depth and the sincerity of that statement will find its way to your hearts as you have touched ours. I love you all. I thank you very, very much. Stay well. Stay healthy. It's great to be together again. You're one of a kind. And let's have some fun. Thank you very much.

Wednesday, August 27, 2014

Wednesday roundup (08-27-14)

Deflationary Fears Are Spreading Globally (Financial Sense)

Eurozone Borrowing Costs Fall To Record Lows (Agence France Presse)

Ailing eurozone suffers another setback as international crises wipe out consumer confidence in Germany 'in one fell swoop' (This is Money)

Italy says will cut growth forecast, consumer morale falls (Reuters)

[In the United States,] CBO forecasts $506 billion budget deficit for 2014 (Marketwatch)

Ben Bernanke: The 2008 Financial Crisis Was Worse Than The Great Depression (Forbes) Bernanke: 2008 Meltdown Was Worse Than Great Depression (The Wall Street Journal blogs)

Big banks are still "too big" [commentary] (USAToday)

Market Basket [grocery chain in New England] weighs closing 
61 stores if deal falls through (The Boston Herald) Will Demoulas saga's next chapter involve bankruptcy? (The Lowell Sun) What’s taking so long with Market Basket [in its attempt to reach an agreement to sell the company]? (The Boston Globe)

     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, August 26, 2014

Tuesday roundup (08-26-14)

Is Europe's Central Bank Finally Getting Worried About Deflation? (Mother Jones)

New French Cabinet Ousts Prominent Leftists (The New York Times) Ex-banker replaces rebel minister in French cabinet shake-up (Reuters)

Italy not alone in failing to recognise its competitiveness problem: Political leaders are avoiding discussing Europe's underlying loss of competitiveness because it can't be solved by talking [Project Syndicate via] (The Guardian)

Russian Economy Nears Recession Amid Ukraine Sanctions (Agence France Presse)

[In the UK] 'We have educated our youth into debt’: Mr Money Saving Expert, Martin Lewis, has finally got financial numeracy put on the school curriculum (The Telegraph)

Have taxes your way: Why Burger King wants to become a Canadian citizen (The Washington Post blogs)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, August 25, 2014

Monday roundup (08-25-14)

Eurozone risks falling into deflation: The recovery in the eurozone has shuddered to a halt. Claire Jones, the FT's eurozone economy correspondent, and Simon Baptist, chief economist at the Economist Intelligence Unit, talk to Daniel Garrahan about the risks of deflation in the single-currency region and the pressure on the ECB to act. [Aug. 15] (The Financial Times)



Eurozone opens doors to QE as Germany and France stumble: Economists expect further radical action from European Central Bank as heartland economies disrupted further (The Telegraph)

More weak German data as French government implodes on euro zone policy split (Reuters)

French President Hollande dissolves government amid feud over economy: France has had effectively no economic growth this year, unemployment is hovering around 10 percent, and Hollande’s approval ratings are in the teens. (The Associated Press) Europe needs France to find a leader who can enact structural reform: For the whole of Europe’s sake we must hope he or she reveals themselves before long (The Telegraph) An austerity revolt has broken the French government. Will the EU follow?: While the chaos in France will be swiftly resolved, time is running out to save the eurozone and EU from their economic fault lines (The Guardian)

BoJ may ease policy for 'some time' to slay deflation: Kuroda (Reuters)

If this is a jobs recovery [in the US], we have a very low bar (Fortune)

Microsoft Admits Keeping $92 Billion Offshore to Avoid Paying $29 Billion in U.S. Taxes (International Business Times)

Fairchild Semiconductor to cut 1,350 jobs in manufacturing reduction (The Associated Press)

550 buyouts, layoffs imminent at Time Warner’s Turner: report (The Washington 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.

Sunday, August 24, 2014

Sunday roundup (08-24-14)

Eurozone inflation trend raises alarm at ECB (The Financial Times) Europe fears deflation as Ukraine stays centre-stage (Reuters) Draghi Pushes ECB Closer to QE as Deflation Risks Rise (Bloomberg)

French ministers demand that François Hollande abandon austerity and condemn Angela Merkel's 'right-wing dogma' (The Independent) French economy minister urges alternative to German austerity (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.

Saturday, August 23, 2014

Saturday roundup (08-23-14)

World getting 'super-aged' at scary speed: The world is graying at a break-neck pace and that's bad news for the global economy. (CNNMoney)



Declining food prices increase the risk of global deflation (ArabNews) [The following article quotes parts of the preceding article, saying that the analysis comes from the QNB or Qatar National Bank] (Gulf Times)

Why deflation is a real risk despite the growth of the UK economy (The Herald of Scotland)

Draghi at Deflation Gulch (The New York Times blogs)

US job market yet to recover from recession, says Fed Chair (France24)

Mass. economy still hasn’t rebounded from recession (The Boston Globe)

Unofficial Problem Bank list declines to 445 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, August 22, 2014

Friday roundup (08-22-14)

Draghi Calls for Less Austerity and More Stimulus in Europe (The New York Times) Draghi says ECB ready to adjust policy if inflation drops further (Reuters)

Europe Fears Banks Lack Cash Cushion to Cover Bad Loans (The New York Times blogs)

Italy’s Downward Spiral (Project Syndicate)

Portugal’s public debt rises to 223.27 billion euros in first half (MacauHub)

Argentina debt plan ruled 'illegal' in US court (The BBC)

Yellen Emphasizes Caution as Fed Considers Raising Rates (The New York Times) Something new in Yellen’s speech: ‘Pent-up wage deflation’ (Marketwatch blogs)

63 trillion gallons of groundwater lost in drought, study finds (The Los Angeles 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.

Thursday, August 21, 2014

Thursday roundup (08-21-14)

Nobel guru fears it may be nigh impossible to stop deflation [in the Western economies] by Ambrose Evans-Pritchard (The Telegraph blogs)

Euro zone business growth slows in August, prices fall: PMI -- [Rob Dobson, senior economist at Markit: "We are not seeing a recovery taking real hold as yet."] (Reuters) Euro zone business activity slips, missing forecasts (CNBC)

French economy going nowhere: now on track for nine straight months of zero growth: Surveys suggest that France's weak manufacturing sector deteriorated further this August, amid suggestions that the eurozone's "feeble recovery" is already over (The Telegraph)

Italy May Need More From Draghi as Debt Load Mounts: Euro Credit (Bloomberg)

Nobel winner Hansen on 'stunningly sluggish' recovery [in the US] (CNBC)

Justice Dept. announces nearly $17 billion settlement with Bank of America (The Associated Press) Why Bank of America probably won’t end up actually paying US$17B in mortgage securities settlement (The Associated Press)

U.S. regulators step up warnings to banks for poor risk-spotting (Reuters)

Chart of the Day: The Horrible Toll of the Recession on the Poor (Mother Jones)

GEA Group to Cut 1,000 Jobs in $133 Million Savings Program (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 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, 08-21-14)

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 14,000 to 298,000 in the week of Aug. 10 to Aug. 16, the Labor Department said Thursday." (Marketwatch)

U.S. jobless claims fall, bolster labor market outlook (Reuters)

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, August 20, 2014

Wednesday roundup (08-20-14)

Nobel economists say policy blunders pushing Europe into depression: German Chancellor Angela Merkel defends eurozone and says it is hard to manage a currency for 18 states by Ambrose Evans-Pritchard (The Telegraph)

Ambrose Evans-Pritchard: Euro Woe’s (McAlvany Weekly Commentary)  (Youtube)



Worse than the 1930s: Europe’s recession is really a depression (The Washington Post blogs)

QE will not be a magic potion for Eurozone woes: While the ECB takes comfort from what consumers say they expect inflation to be over the long term, a look at expectations as expressed in the bond markets shows a different picture (GulfNews)

There's only one cure for the eurozone's terminal disease [= allow the euro to collapse] (Business Spectator)

Angela Merkel scolds Italy and France over the faltering eurozone recovery: German chancellor claims stifled growth is due to countries running high deficits and breaking fiscal rules set by Brussels (The Guardian)

France Acknowledges Economic Malaise, Blaming Austerity (The New York Times)

As European deflation risks rise, Italy stands to suffer more (Xinhua)

Bank of England splits over rate hike for first time in 3 years (Reuters)

Household debt could tip [UK] economy back into recession (EveryInvestor)

Fed debates merits of earlier rate hike given U.S. jobs gains (Reuters)

'Severe' drought covers nearly 99.8% of California, report says (The Los Angeles Times)

Staples to Shut 140 Stores This Year as Sales Decline (Bloomberg)

What exactly is the Market Basket board doing? (The Boston Globe) Being of Service: Why Meaning and Mission Matter in Business (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 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, August 19, 2014

Tuesday roundup (08-19-14)

Too little reform, central bank risk and banking fraud - have we [in Europe and the US] not learnt anything?: The Federal Reserve has become a rogue hedge fund, taking massive, wildly speculative positions (The Independent)

ECB in policy limbo, boxed in by its own plans (Reuters)

European Austerity Is a Myth (BloombergView)

Recovery Mirage in Spain Dissipates Into Ashes (Mish's Global Economic Trend Analysis blog)

UK inflation falls more than expected; 2014 rate rise less likely (Reuters)

[And also in the United States,] Key Measures Show Low Inflation in July (Calculated Risk blog)

Nearly Half of Americans Think the Recession Is Not Over (Bloomberg)

'Is it safe to hire?' Business owners don't trust recovery (CNNMoney)

Uneven Housing Data Likely Still Concerning for Fed: New home construction is up 21.7 percent from a year ago, but demand isn't where economists had hoped. (U. S. News & World Report)

Should big banks be broken up?: YES: It would help regulation and diminish risk (The Sun Sentinel of Fort Lauderdale, Florida)

     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, August 18, 2014

Monday roundup (08-18-14)

Draghi is running out of legal ways to fix the euro: The ECB has signalled that it is safe to bet against the inflation target (The Financial Times)

France’s missed deficit targets bad for eurozone (FT Adviser)

The Italian Runaway Train (Credit Writedowns blog)

Are We [in the US] Entering A Recession? (Forbes) Is the U.S. economic recovery almost over — already?: History does not provide a lot of comfort (The Week)

Hunger in America: 1 in 7 rely on food banks (USAToday)

36% of adults lack retirement savings -- 14% of them 65 or over (The Los Angeles Times)

Lawmakers: Fed leaves door open to 'backdoor bailout' in future (The Hill) Lawmakers slam Fed's crisis lending proposal (Reuters)

PricewaterhouseCoopers Unit to Pay $25 Million Fine (The Wall Street Journal blogs)

Monarch to cut 1,000 jobs as airline seeks take off as low-cost carrier: [British] Charter airline will shed third of staff and sell off planes as it attempts to reinvent itself as low-cost European scheduled flyer [Reuters via] (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.

Sunday, August 17, 2014

Sunday roundup (08-17-14)

Sliding Towards Deflation [in the Eurozone] (National Review)

Fears of Renewed Instability as Fed Ends Stimulus (The New York Times) [versus] Why The Fed Can't, And Won't, Let The Stock Market Crash (ZeroHedge blog)

Jamie Dimon’s $13 Billion Secret: The inside story of JPMorgan Chase’s landmark mortgage settlement (The Nation)

     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, August 16, 2014

Saturday roundup (08-16-14)

California’s Record Heat Is Like Nothing You’ve Ever Seen... Yet (Bloomberg)

Unofficial Problem Bank list declines to 447 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, August 15, 2014

Friday roundup (08-15-14)

Europe’s Greater Depression is worse than the 1930s (The Washington Post blogs)

Europe risks deeper economic crisis as Russia buckles and defaults mount in Ukraine: Ukrainian attack on Russian convoy triggers stock market sell-off and flight to safety by Ambrose Evans-Pritchard (The Telegraph)

Russia’s secret weapon against Europe: Deflation (Quartz)

Japan not out of deflation yet: economy minister (Agence France Presse)

Fight Brews [in the United States] on Changes That Affect Derivatives (The New York Times blogs)

Deere to cut more than 600 factory jobs: Move comes two days after the farm equipment maker reported a 15% drop in fiscal third-quarter profit. (Fortune)

     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, August 14, 2014

Thursday roundup (08-14-14)

Is the eurozone being dragged into deadly spiral of deflation?: Portugal, Greece and Spain are in deflation, official figures show, while Italy's inflation rate fell to zero in July (The Telegraph)

Eurozone nations grind to standstill: German economy goes into reverse as France stagnates (The Daily Mail) Euro-Area Pickup Stalls as Big Economies Fail to Grow (Bloomberg) ["'It’s fairly clear that the eurozone recovery is coming apart at the seams,' said Nicholas Spiro, managing director of Spiro Sovereign Strategy in London"] (The New York Times)

Euro woe: With Ukraine unstable, low Eurozone growth is troubling [Editorial] (The Independent) Eurozone crisis: The grim economic reality (The BBC)

With No Growth, Do Europe’s Governments Scrimp or Spend? (The Wall Street Journal blogs)

German economy shrinks, hitting European recovery hopes (Reuters) Germany is itself a victim of EMU’s austerity fanatics by Ambrose Evans-Pritchard (The Telegraph blogs)

Stagnating France to miss deficit target, urges EU leniency (Reuters) France Gives Up On Deficit Target (Dow Jones Newswires) France Risks EU Deficit Clash After Scrapping Targets (Bloomberg) France rebels against austerity as Europe's recovery collapses: France’s finance minister sends tremors through European capitals with a defiant warning that his country would no longer try to meet deficit targets by Ambrose Evans-Pritchard (The Telegraph) Why Francois Hollande’s France has become the eurozone’s weak link: It feels as if France will eventually emerge as the euro’s biggest threat (The Telegraph) EU Leaders' Austerity Fight Is Crucial For Euro Future (Forbes) 'The whole eurozone is sick, not just France' (The Local)

Italy's Renzi, ECB's Draghi hold "secret" meeting as economy slides (Reuters)

Spanish public debt tops €1 trillion-mark (The Local)

Families in the red 'pose threat to UK recovery' as household debt more than quadruples since 1990 (This is Money) ["'This is kind of scary -- these people have stretched themselves to the hilt,' said David Blanchflower, a former Bank of England Monetary Policy Committee member"] (Bloomberg)

Is Europe heading for recession and dragging Britain down with it? (The Mirror) Why the eurozone's woes could hurt the UK: Growth in the single currency bloc has ground to a halt, but how does this affect the UK? (The Telegraph)

Weakness in Eurozone, Asia pose risks to U.S. economy (The Los Angeles Times)

One More Thing to Worry About [in the US Financial Industry] (The Mess That Greenspan Made blog) One of the biggest cracks in the financial system still isn’t fixed (Quartz)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, 08-14-14)

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.)

"The number of people who applied for unemployment benefits rose 21,000 to 311,000 in the week the ended Aug. 9, hitting the highest level since June, according to government data released 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, August 13, 2014

Wednesday roundup (08-13-14)

Will A Global Slowdown Blindside Bulls? (The Wall Street Journal blogs)

Unexpected drop in euro zone output clouds recovery hopes (Reuters) Euro-zone industrial production falls again (Marketwatch)

One-in-three chance the ECB conducts QE next year: Reuters poll (Reuters)

The calm before the eurozone storm (Business Spectator)

French deflation fears rise as prices fall (The Local)

French lawmaker says 'unavoidable' to scrap deficit target: Les Echos (Reuters)

Now even German inflation tumbles as eurozone struck by ‘lowflation’ gloom: German price growth has fallen to an 0.8pc low as IMF staff warn that "lowflation" could damage the euro area as a whole (The Telegraph)

Italy's Renzi must bring back the lira to end depression: It is an incontrovertible fact that Italy’s 14-year disaster coincides with EMU membership by Ambrose Evans-Pritchard (The Telegraph)

Hidebound Italian economy presents dilemma for ECB (The Associated Press)

Eurozone woes deepen as Spain's industry slumps: Production declined across the 18 eurozone members by an average 0.3%, with Spain's industrial production declining 0.8% (The Guardian)

Don't repeat mistakes of Irish bailout, former IMF official warns Portugal (Reuters)

Japan GDP growth collapses amid sales tax shock (CNNMoney) Japan's Economy Shrinks In Q2 From Higher Sales Tax Effect, Stokes Deflation Fears (International Business Times) Japan firms finally get pricing power just as economic growth sputters (Reuters)

Worst drought in half a century hits China’s bread-basket (Marketwatch)

Cry for Argentina: Fiscal Mismanagement, Odious Debt or Pillage? by Ellen Brown (The Web of Debt blog) Hedge Fund vs. Sovereign: How U.S. Courts Are Upending International Finance by Felix Salmon [June 24] (Foreign Affairs)

[In the US,] Worst Retail Sales Showing in Six Months in Slow Start to Third Quarter (Bloomberg)

Yellen resolved to avoid raising rates too soon, fearing downturn (Reuters)

Lobbyists Are Seeking to Delay for Years a Key Piece of Bank Regulation (Moyers & Company)

Strong Storms Shatter Records on Long Island, Cars Nearly Submerged (NBCNews)



Cisco to cut another 6,000 jobs as forecast falls flat (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, August 12, 2014

Tuesday roundup (08-12-14)

Crisis stalks Europe again as deflation deepens, Germany stalls: Data from Germany, Italy and Portugal put pressure on ECB to act by Ambrose Evans-Pritchard (The Telegraph) Ukraine Crisis Takes Toll on Germany’s Economy, Powerhouse of the Eurozone (The New York Times) Russia, Ukraine Turmoil Takes a Toll on Europe’s Powerhouse (FoxBusiness) German Investor Confidence Slumps on Ukraine Crisis (Bloomberg)

German Yields Falling Toward 1% Shows Japan-Style Risks Building (Bloomberg)

The Outlook For Germany In One Word: 'Grim' (The Business Insider)

'Elephant in the Eurozone': Ailing French Economy Threatens to Break Apart Currency Area (International Business Times) Stagnating France heads towards fiscal targets miss (Reuters)

Rome, other Italian cities hit by deflation in July (Reuters) Da Torino a Bari, dieci grandi città in deflazione (Il Sole 24 Ore)

Most Italians worried about money: survey (The Local)

Ukraine’s Currency Drop May Swell Emergency Bailout Needs (The Wall Street Journal blogs)

Japan GDP set to fall sharply; may increase stimulus expectations (Reuters)

Sovereign Debt: Eroding Japan’s National Security: Japan’s rising public debt has implications that go beyond its economy. (The Diplomat of Tokyo)

International banks struggling to cut Argentina debt deal - sources -- ["'These are not fully-baked proposals,' [said] a source ..."] (Reuters)

Market Basket protests a victory for capitalism for all, not some: Market Basket CEO Arthur T. Demoulas worked to keep prices low and pay his employees more. No wonder that when the board moved to oust him in favor of someone who would increase profitability for shareholders, managers, employees, and customers of Market Basket were outraged. by Robert Reich (The Christian Science Monitor) Lessons (so far) from the Market Basket battle (The Boston Business Journal blogs) Game Theory Expert Analyzes Market Basket Conflict (WBUR)



It's Not Just Healthcare That's Bankrupt--It's Our Legal System, Too 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 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, 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.

Sunday, August 10, 2014

Sunday roundup (08-10-14)

Oil and gas company debt soars: Energy businesses are selling assets and took on $106bn in net debt in the year to March, writes Ambrose Evans-Pritchard (The Telegraph)

'FLATLINER': Germany Is Now At Risk Of Pulling All Europe Back Into Recession (The Business Insider)

Portugal bank failure knocks recovery (The Financial Times)

[In the US,] Arthur T. Demoulas pushes for Market Basket deal before it's 'too late': Ousted CEO says talks are continuing (WCVB)

     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, August 9, 2014

Saturday roundup (08-09-14)

Lagging France is 'threat to eurozone': France could push the eurozone to "breaking point" if politicians do not follow through on reforms, says Centre for Economics and Business Research (The Telegraph)

Something's got to give in Italy: better it be Draghi with a bag of cheap loans: Things are looking bleak for Italy. With no growth and no inflation it and other eurozone countries need an injection of quantitative easing to help them weather reforms and sanctions (The Observer)

China posts benign consumer inflation in July, but producer deflation stays stubborn (Reuters)

More ObamaCare woes: [US] Congress must act to block health insurance bailout by Sen. Marco Rubio (R) of Florida (FoxNews)

Here’s How to Ensure Big Banks Don’t Need Another Bailout: The Fed and FDIC have all the power they need to solve ‘Too Big to Fail’ (The Fiscal Times) Too Big to Regulate [editorial] (The New York Times)

Unofficial Problem Bank list declines to 449 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, August 8, 2014

Friday roundup (08-08-14)

Are contagion fears gripping eurozone banks?: Regulators have introduced bans on short selling Italian and Portuguese banks amid share price volatility (The Telegraph)

France fails to narrow budget deficit (Dow Jones Newswires)

Draghi Takes Aim at Italy as Recession Scars Euro Area (Bloomberg)

Italy approves economic package amid scepticism, recession (Reuters)

Bulgaria asks IMF for financial system review after bank woes (Reuters)

IMF says Ghana has requested assistance (Agence France Presse)

China is exporting deflation to the world again by Ambrose Evans-Pritchard (The Telegraph blogs)

Judge Griesa Threatens Argentina With Contempt Over Its Statements (The New York Times blogs)

Wall Street Isn’t Fixed: TBTF Is Alive And More Dangerous Than Ever by David Stockman (David Stockman's ContraCorner blog) IT’S OFFICIAL: TOO BIG TO FAIL IS ALIVE AND WELL (EconoMonitor)

Market Basket to Arthur T: ‘It Is Time to Move On’ (Boston) A Family of Workers Rises Up to Save Their CEO (Bloomberg) Arthur T.’s future role looms large in Market Basket talks (The Boston Globe) Outraged Employees and Customers Write Letters to Market Basket (Boston) Bare shelves for Market Basket as employees and shoppers unite in profit-sharing fight (PBSNewsHour)



Coal mine closing to slash 500 jobs in Greene County [Pennsylvania]: Emerald shutdown to abolish 500 jobs (The Pittsburgh Post-Gazette)

     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.