Sunday, November 30, 2014

Sunday roundup (11-30-14)

China: Fear of a deflationary spiral: Falling prices for manufacturers plagued by overcapacity present a problem for Beijing’s policy makers (The Financial 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.

Saturday, November 29, 2014

Saturday roundup (11-29-14)

[In the UK,] The north hits back at Osborne’s austerity: ‘it’s devolution or bust’: The chancellor will use his autumn statement to talk of creating a ‘northern powerhouse’ – but England’s regions are suffering (The Observer)

Thousands taking part in anti-austerity protests in Montreal and Quebec City (The Montreal Gazette)

Unofficial [US] Problem Bank list declines to 408 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, November 28, 2014

Friday roundup (11-28-14)

Eurozone unemployment a persistent headache: The fight by governments against alarmingly high unemployment in the eurozone has so far failed to yield tangible results. The latest figures showed sluggish growth in the bloc had been a curse for the labor market. (Deutsche Welle)

Eurozone Inflation Hits 5-Year Low as European Commission Calls for Austerity (International Business Times) Eurozone Inflation Rate Dips, Stirring Deflation Fears (The New York Times)

Tens of thousands march against austerity measures in Greece: Greece has come to a standstill after tens of thousands of workers took to the streets in a 24-hour nationwide strike. New austerity policies and tax raids have ignited further discontent among the Greek population. (Deutsche Welle)

Italian Unemployment Rate Rises to Record, Above Forecasts (Bloomberg)

Why Italy's stay-home shoppers terrify the euro zone [= think "deflation"] (Reuters)

European Commission endorses Irish budget but warns on debt: Brussels approves plan but says economic dividend should be used to run down debt (The Irish Times)

So banks [in the UK] are too big to fail. Are they also too big to regulate?: Despite scandal after scandal in the financial sector, the absence of personal accountability persists (The Guardian)

Japan's inflation slows, highlighting difficulties in vanquishing deflation, other data mixed (The Associated Press) Japan: Inflation Slows for Third Straight Month in October: Analysts remain doubtful of BoJ's view that inflation will accelerate to 2% next fiscal. (International Business 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, November 27, 2014

Thursday roundup (11-27-14)

ECB's Draghi warns countries to reform as clouds gather over euro zone (Reuters) Draghi Highlights the Eurozone’s Unfinished Business (The Wall Street Journal blogs) Europe's economy faces three major risks: Draghi (CNBC)

France, Italy, Belgium may break budget rules, EU to revisit in March (Reuters)

Swiss vote provokes '6,000-year gold bubble' attack: 'Save Our Swiss Gold' referendum is a primordial scream against a world of quantitative easing but would paralyze the Swiss National bank by Ambrose Evans-Pritchard (The Telegraph)

After zero rates, Sweden ponders next steps to avoid deflation (Reuters)

After bailout talks hit fresh delays, Greece says under pressure for new austerity measures (The Associated Press) Greeks Go On Strike Over New Austerity Measures (The New York Times)

Rostelecom to Cut Thousands of Jobs Over Next Four Years: Huge Job Cuts at Russia’s State-Controlled Telecom Firm Could Weigh on Embattled Economy (The Wall Street Journal)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, November 26, 2014

Wednesday roundup (11-26-14)

Another recession may be devastating for heavily indebted countries, report shows ["Greece, Ireland, Italy, Japan and Portugal were most vulnerable."] (The Sydney Morning Herald)

ECB could start full-blown QE in early 2015: Constancio [The Wall Street Journal via] (Marketwatch)

Juncker investment plan a first step but more needed: France (Reuters)

Greece fails to reach deal in Paris over bailout exit (Reuters)

Growth in U.S. Off to Slow Start in Fourth Quarter: Economy (Bloomberg)

Pending Sales of U.S. Homes Unexpectedly Fell 1.1% in October (Bloomberg)

Consumers Stay Within Means as U.S. Spending Matches Income (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, 11-26-14)

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 leaped by 21,000 to 313,000 in the week ended Nov. 22, the Labor Department said." (Marketwatch)

Jobless Claims in U.S. Increase to Almost Three-Month High (Bloomberg)

SEE LAST WEEK'S POST HERE.

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

Tuesday roundup (11-25-14)

Eurozone Stagnation Poses Major Risk to Global Growth, OECD Warns: Currency Bloc Needs Monetary Stimulus, Softening of Fiscal Discipline to Avoid Persistent Low Growth (The Wall Street Journal) Euro area ‘major risk to world growth’: OECD (CNBC) Eurozone area may be in 'persistent stagnation trap' says OECD (The BBC) O.E.C.D. Calls for Fiscal and Monetary Measures to Spur E.U. Growth (The New York Times)

Jean-Claude Juncker's €315bn New Deal dismissed as a subprime gimmick: 'It's unbelievable. The private sector will take governments to the cleaners,' said Professor Charles Wyplosz by Ambrose Evans-Pritchard (The Telegraph)

Euro zone torpor hits German, French, Italian firms (CNBC)

Stalled Greek bailout talks to resume in Paris on Tuesday (Reuters)

OECD warns Ireland over ‘premature’ shift from austerity: Paris-based think-tank says Irish economy ‘very vulnerable’ to external shocks (The Irish Times)

Bank of Japan's Kuroda resolute in fight against deflation, says ready to ease more (Reuters)

Falling apart: America's neglected infrastructure: Steve Kroft reports on why our roads, bridges, airports and rail are outdated and need to be fixed. (CBSNews Sixty Minutes)



The Fed has boxed U.S. into a tough easy-money corner by Satyajit Das (Marketwatch)

How we’re going from bad to worse on Wall Street (Marketwatch)

HSBC admits fault, is fined [$12.5 million] by SEC over Swiss bank (Reuters)

ING cuts 1,700 jobs as part of digital push (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.

Monday, November 24, 2014

Monday roundup (11-24-14)

Quote of the Day:

"Just before the close of our civil war he [President Abraham Lincoln] penned the following prophetic utterances: 'Yes, we may congratulate ourselves that this cruel war is nearly to a close. It has cost a vast amount of treasure and blood. The best blood of the flower of American youth has been freely offered upon our country's altar that the nation might live. It has been indeed a trying hour for the republic; but I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of our country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war. God grant that my impressions may be groundless.'

"If there was ground for such fears and apprehensions nearly a quarter of a century ago, how much greater reason have we now to apprehend danger from these causes, when corporations have multiplied and combined their power and influence, and wealth has been aggregating in the hands of a few with such unexampled rapidity, until it overshadows and controls all the important industrial interests of the country, and has become the most potent factor in every election of legislative, executive, and ministerial offices. Can this power be controlled by legislation or counteracted by other controlling influences, and the impending danger which so impressed and agitated the mind of the patriot Lincoln be averted? Surely no more momentous question was ever propounded to an enlightened people, living under a government emanating from themselves and theoretically based upon and controlled by their freely-expressed will. Are we now about to discover that, under the guise of freedom, and the encouragement of trade, commerce, and manufactures, we have created and fostered in the money power a tyranny as potent and as destructive of liberty and equality as that of the most absolute ruler in the world?" -- Sanford Moon Green, Chief Justice of the Michigan Supreme Court, in Crime: Its Nature, Causes, Treatment, and Prevention (1889), pp. 312-313 (Google Books)[Biography] (Michigan Supreme Court Historical Society)

New Abnormal Means Relying on Central Banks for Growth (Bloomberg)

Is the Eurozone falling into a lost decade? (Forbes)

Euro zone yields hit record lows: Is ECB trumping reality? (CNBC) German bond yields to trump Japan as ECB battles deflation: "Be very bullish. The huge elephant in the room is ready to roar again," RBS advises clients by Ambrose Evans-Pritchard (The Telegraph) Now It’s Core Europe’s Turn for a Crisis: Greece and Spain had rising bond yields. For France and Germany it’s falling growth. (The Wall Street Journal)

Britain's EU retreat means German hegemony warns Prodi: The EU is either a treaty club of democracies and equals, or it is nothing by Ambrose Evans-Pritchard (The Telegraph)

Bundesbank head: Need reforms for eurozone growth (Marketwatch)

Slow economic growth to be 'prolonged', says BoE economist [includes video that can't be embedded] (The BBC) Bank of England: 'People are seeking safety at any price' (The BBC)



Stalled Greek bailout talks to resume in Paris on Tuesday (Reuters)

China likely to ease further soon, analysts say (Marketwatch)

Russia faces recession as oil crash and sanctions cost economy £90bn: Anton Siluanov, Russia's finance minister, has warned that the economy could face a hit from falling oil prices, weeks after Vladimir Putin claimed that they had been manipulated by political forces (The Telegraph)

[In the United States,] Dudley Leaves Senators Unimpressed as Fed Scrutiny Rises (Bloomberg) Why the New York Fed Annoys Republicans and Democrats Alike (Bloomberg) The Week That Shook the Fed (The New York Times)

Syngenta [which develops genetically modified seeds] announces restructuring plan, including 1,800 global layoffs (Triangle Business 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.

Sunday, November 23, 2014

Sunday roundup (11-23-14)

Bailouts, bail-ins and the banks: why we can’t afford another financial crisis: Governments are not flush enough to contemplate a second wave of bailouts, which leaves the problem of too ‘big to fail’ unsolved, writes Larry Elliott (The Guardian blogs)

Falling inflation a worry for Europe but also the world (Reuters)

Radical left is right about Europe’s debt: It is logically inconsistent for the eurozone to enter secular stagnation and not restructure by Wolfgang Münchau (The Financial Times)

Debt issued by European companies heads for post-crisis high (The Financial Times)

Countdown to missed opportunity for EU economy (Reuters)

China ready to cut rates again on fears of deflation - sources (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, November 22, 2014

Saturday roundup (11-22-14)

Austerity has clearly failed [in the UK]. So why don’t they ditch it?: Falling incomes are fuelling the deficit and costing votes. But Cameron is looking after other interests (The Guardian)

Japanese QE tsunami risks global meltdown: The scale of the money-printing programme being undertaken in Tokyo threatens to start a wave of panic that forces the yen down, says Liam Halligan (The Telegraph)

There’s a Giant Contradiction at the Heart of the U.S. Economy (The New York Times)

Why wage growth disparity tells the story of America's half-formed economic recovery (The Washington Post)

America's part-time economy (CNNMoney)

Unofficial Problem Bank list declines to 411 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, November 21, 2014

Friday roundup (11-21-14)

Draghi throws ECB door open to money printing as global prospects dim (Reuters)

Troika urges Ireland to intensify further deficit reductions: Budget 2015 ‘makes less progress than desirable’ according to European officials (The Irish Times)

[UK] Chancellor haunted by deficit and £1.45 trillion debt pile: Government borrowing falls in October, but tax receipts remain weak, reducing chance of big giveaways in the Autumn Statement (The Telegraph)

In Change Of Strategy, China Cuts Interest Rate (The New York Times) Chinese Central Bank Falls Back on Trusty Rates Lever as New Tool Kit Not Enough (Bloomberg) China blinks as economic downturn deepens: "China is not safe until they put the credit genie back in the bottle but that is going to be very difficult to do,” warns UBS by Ambrose Evans-Pritchard (The Telegraph)

Commodities could lead to [US] banks needing another bailout: experts (Marketwatch) Report shows need to rein in Wall Street by Sen. Carl Levin (D) of Michigan (The US Senate)

N.Y. Fed President Dudley: I’m More of a Fire Warden, Not a Cop on the Beat (The Wall Street Journal blogs) Senate Democrats blast New York Fed over bank regulation (Reuters)

Why Elizabeth Warren would be a very dangerous candidate in 2016 (The Washington Post blogs)

KentuckyOne's parent to cut 1,500 across U.S. (The Louisville Courier-Journal)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, November 20, 2014

Thursday roundup (11-20-14)

The World Economy Is Slowing (The Business Insider) Creaking euro zone, China sound warnings for global growth (Reuters)

PMI signals "weakest Eurozone growth" for more than a year (CityAM) Growth at Risk as Factories, Services Weaken (Bloomberg) Eurozone recovery loses further steam in November [and "faces the real prospect of sliding back into recession"] (The Associated Press)

Germany Just Dragged Europe's Growth To A 16-Month Low (The Business Insider)

EU still considering fining France over budget rules (Reuters)

Weary Italy vents its rage in spate of strikes and protest (Reuters) Two major Italy unions call strike over government economic policies (Reuters)

Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro (The Market Oracle)

Ukraine's economy: It is really that bad (The Economist blogs)

Russia’s lackluster economy means Putin simply can’t afford a new Cold War (Time)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, 11-20-14)

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 291,000 in the week ended Nov. 15, the Labor Department said Thursday." (Marketwatch)

Fewer Than 300,000 in U.S. File Jobless Claims for 10th Week (Bloomberg)

Applications for US jobless aid slip; fewest Americans receiving benefits in 14 years (The Associated Press)

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, November 19, 2014

Wednesday roundup (11-19-14)

Bank of Spain calls for increased deficit cutting efforts (Reuters)

Jail threat is biggest deterrent for bad bankers, says Bank of England official: Minouche Shafik tells MPs that criminal sanctions are 'top of the list' in making bankers think twice as Icelandic bank boss Sigurjon Arnason is jailed (The Telegraph)

Americans, with record consumer debt of $3.2 trillion, are taking out more credit card and auto loans: The 28-29 October meeting of the Federal Reserve board of governors gave the economy a clean bill of healthy, but noted market concern about Ebola (The Guardian)

FOMC Minutes: "a few expressed concern that inflation might persist below the Committee's objective for quite some time" (Calculated Risk blog)

Peugeot plans to cut 3,450 French jobs in 2015: sources (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, November 18, 2014

Tuesday roundup (11-18-14)

ECB entering 'very dangerous territory' warns S&P: “The risk of a triple-dip recession have increased. The ECB has one last arrow and that is quantitative easing of €1 trillion," said the credit rating agency by Ambrose Evans-Pritchard (The Telegraph)

France's flailing economy endangering the eurozone: The French economy is stagnating, with growth only in unemployment and the national debt. It will likely only hit the EU budget deficit target in 2017. Will the debt spiral continue? (Deutsche Welle)

Dutch Admit Prepping for Eurozone Breakup in 2012 (The Associated Press)

Greece at odds with EU/IMF lenders in 'tough' bailout review (Reuters) Greek Bailout Review Stalls as Troika Demands Final Steps (Bloomberg)

Tuition fees: Three quarters of students [in the UK] won’t be able to pay off their debt: A funding 'black hole' is forcing the Government to indirectly subsidise higher education writing off billions of pounds in student debt (The Independent)

Russia Sees Recession Next Year If Oil Price Falls to $60 (Bloomberg)

Japan Has Been in a Depression Since 1990: Rickards (Bloomberg)



About two-thirds of Americans are limiting spending, survey finds (The Chicago Tribune)

Too-Big-To-Manage Emerges As New Concern In the Financial Crisis (The New York Sun)

Too big to jail: why the government is quick to fine but slow to prosecute big corporations (Vox)

     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, November 17, 2014

Monday roundup (11-17-14)

Japan in recession: 'Red warning lights' for global economy (The Associated Press) Better Economic Policy Won't Save Japan (BloombergView)

5 reasons to worry about the world economy (CNNMoney)

As Japan Falls Into Recession, Europe Considers Ways to Avoid the Same Fate (The New York Times)

Euro zone deflation is threat to euro, ECB must act - ING IM (Reuters)

ECB open to more easing if needed, says Draghi (Marketwatch) ECB's Draghi: Buying sovereign bonds is an option (CNBC)

France challenges Germany over [its opposition to] eurozone stimulus (The Independent)

[From an Irish perspective:] Why Europe needs to reverse the austerity Germany has championed: ‘Not only was Ireland bullied by the ECB into entering a programme, but a large chunk of the received funds was transferred straight to the financial sector and foreign creditors (including various German banks)’ (The Irish Times)

Ukraine finances in jeopardy: IMF (CNBC)

Banking culture needs fundamental overhaul not fines, Mark Carney says: Bank of England governor’s proposals to curb excessive risk-taking include putting non-bonuses or fixed pay on the line (The Guardian) Banker pay must stop encouraging misconduct: Carney (CNBC) Crooked bankers could be forced to repay their salaries under fresh Bank of England crackdown (The Daily Mail)

The U.S. Money Supply Decelerates in October, the Risk of an Economic Bust Just Went Up (Forbes)

Industrial Output in U.S. Unexpectedly Fell in October (Bloomberg)

FHA is back in the black — but not out of the woods (The Washington Post)

Arctic Blast Brings Freezing Temperatures and More Snow to U.S. (NBC Nightly News with Brian Williams)


ABC [= The Australian Broadcasting Corporation] will be cut by $50m a year, costing 500 jobs by Christmas, as Turnbull defends Abbott on Q&A (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.

Sunday, November 16, 2014

Sunday Roundup (11-16-14)

Japan's economy dips into recession (The BBC) Defying Expectations, Japan’s Economy Shrinks Further (The New York Times

It's Not Just Japan That's Failed; The "Asian Miracle" Model Has Also Failed by Charles Hugh Smith (Of Two Minds blog)

China Bad Loans Jump Most Since 2005 as Economy Cools (Bloomberg)

Belgium new sick man of Europe on debt-trap fears: New accounting rules have revealed that Belgium is poorer than previously thought by Ambrose Evans-Pritchard (The Telegraph)

Greece to seek extra debt relief as 'reward', says PM Antonis Samaras (Agence France Presse)

[The United States] Postal Service lost $5.5 billion in 2014 despite more gains in operating revenue (The Washington Post)

Commentary: Richmond Fed president says it’s time to end the era of “too big to fail” (The Washington Post)

Bill Black: Financial Regulations In Paralysis (Youtube)



Unofficial Problem Bank list declines to 415 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.

Saturday, November 15, 2014

Saturday roundup (11-15-14)

5 TAKEAWAYS ON EUROZONE GDP: There’s growth in the eurozone, but only barely. Gross domestic product figures for the single currency zone show an expansion of 0.2% in the third quarter. While that’s better than expected, the eurozone’s output is still 2% below its precrisis peak in 2008. Here are the key things to know. (The Wall Street Journal blogs)

The spectre of communism? Europe should fear the spectre of austerity: Germany was at the heart of the struggle between east and west. Now it is at the heart of one between growth and deflation (The Guardian)

Across Europe disillusioned voters turn to outsiders for solutions: Our correspondents in the European capitals report on the rise of insurgent parties across the continent (The Observer)

'Austerity kills': Thousands rally against French President Hollande in Paris (Russia Today)

Battered, Greece Faces Years to Recoup Recession (The Associated Press)

'Savage cuts' [to Britain's national budget]? You ain't seen nothing yet (The Daily Mail)

City [of London] shamed again [in Libor scandal] but fines fail to stop banks behaving badly: And with a string of penalties for major firms still in the pipeline, regulators face pressure to find an effective deterrent (The Observer)

A majority of Americans make less than $20 per hour (Marketwatch)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats 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, November 14, 2014

Friday roundup (11-14-14)

World Economy Worst in Two Years, Europe Darkening, Deflation Lurking: Global Investor Poll (Bloomberg)

Jim Rickards: The World is in an Economic Depression (Cliff Küle’s Notes blog)

Europe dodges recession - barely (CNNMoney) The Eurozone Economy: Not in Recession, but Still a Mess (The Fiscal Times) Eurozone dodges triple-dip recession but submerges in 'lost decade': Italian ex-minister warned that “Titanic Europe” is heading for a shipwreck, demanding an “orderly break-up” of the euro unless there is a radical change of course by Ambrose Evans-Pritchard (The Telegraph) How can the eurozone escape a lost decade?: Unlike the US and the UK, the eurozone has never really shown signs of emerging strongly from the financial crisis and recession of 2008-09 (The Guardian blogs)

Italy’s Slump Enters Fourth Year, Complicating Renzi’s Plans (Bloomberg)

EU to demand further corrections to Italy 2015 budget - source (Reuters)

Anti-austerity protests erupt across Italy: Demonstrators have taken to the streets in many Italian cities to protest against the government's labor and social reforms. The protests coincide with the release of economic data showing Italy is back in recession. (Deutsche Welle)

Cost of living [in Ireland] falls for second month as deflation fears rise (The Irish Independent)

Is money Britain's biggest taboo? One in five lie to their partner about debts and three times as many have no idea how much their close friends earn (This is Money)

Ukraine faces economic breakdown as war returns: Analysts say the IMF has repeated the errors made in Argentina and Greece: lending large sums of money to a country charging headlong towards insolvency by Ambrose Evans-Pritchard (The Telegraph)

China October lending down sharply, signals deeper fourth-quarter slowdown (Reuters)

A House Is Not a Credit Card (The New York Times)

State pension funds' combined underfunding rises to $4.7 trillion — report (Pensions and Investments)

Pa. faces $2 billion budget deficit, and credit is tight (The Philadelphia Inquirer)

Cleveland's plan to destroy nearly 6,000 homes (CNNMoney)

Ohio’s unfunded pension liability more than $25K per resident (Ohio Watchdog)

ABN Amro to cut up to 1,000 jobs as customers shift online (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, November 13, 2014

Thursday roundup (11-13-14)

Eurozone deflationary pressures to worsen: Professional forecasters surveyed by the European Central Bank have said inflation in the 18-member eurozone will stay lower than previously expected for some years to come. There's also little sign of growth. (Deutsche Welle)

Lew warns of European 'lost decade' [The Financial Times via] (CNBC)

Friday’s GDP number will tell us if Germany is facing a recession (Marketwatch) German economy averted recession in third quarter: ministry (Reuters)

Italy central bank warns on low inflation threat for public debt (Reuters)

Poland deflation now deepest in 32 years (Reuters)

China's economy shows more signs of weakness (The BBC)

Abenomics Creates "Potential For Economic Collapse Triggered By Bond Market Crash", Warns Richard Koo (ZeroHedge blog)

Former Goldman Banker Reveals The Path To The Next Depression And Stock Market Collapse [in the United States] (ZeroHedge blog)

[Finland's] UPM-Kymmene to reduce newsprint production, cut 550 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.

Is it a recovery yet? (Weekly report, 11-13-14)

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 12,000 to a seasonally adjusted 290,000 in the seven days ended Nov. 8, 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, November 12, 2014

Wednesday roundup (11-12-14)

Regulators fine global banks $4.3 billion in currency investigation [= HSBC Holdings Plc, Royal Bank of Scotland Group Plc, JPMorgan Chase & Co, Citigroup Inc, UBS AG and Bank of America Corp] (Reuters) Big Banks Are Fined $4.25 Billion in Inquiry Into Currency-Rigging (The New York Times blogs)

G20 summit: global economy cannot afford 'European lost decade': Jacob Lew, the US Treasury Secretary, says global economy cannot endure 10 years of "status quo policies" that will fail to boost growth (The Telegraph)

Tim Geithner reveals in the raw how Europe's leaders tried to commit financial suicide: Taped transcripts of the former US Treasury Secretary expose a catalogue of errors that will haunt Europe for years, made worse by misplaced righteousness by Ambrose Evans-Pritchard (The Telegraph)

Mark Carney to write first ever official low inflation letter: Cost of living to dip below 1 per cent over next  six months, warns Bank of England (The Independent) The Bank Of England Is Slamming The Brakes On A Rate Hike: Here's What You Need To Know (The Business Insider)

Spreading deflation across East Asia threatens fresh debt crisis: Asia's currency skirmishes are happening in a region of festering grievances and territorial disputes, with no Nato-style security structure to dampen down fires by Ambrose Evans-Pritchard (The Telegraph)

Verizon Said to Plan About 1,000 Job Cuts Through Buyouts (Bloomberg)

GM laying off 510 at 2 Michigan plants (The Detroit News)

     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, November 11, 2014

Tuesday roundup (11-11-14)

Europe: the storm clouds are gathering once more: Britain faces five more years of austerity, and Europe’s woes will only increase the pain (The Telegraph)

Fears of German recession as moment of truth looms (CNBC)

Alleged Sarkozy plot rocks French political establishment [The Financial Times via] (CNBC)

Is Switzerland Arming in Preparation for A European Social Meltdown? (Global Research)

Fed’s Fisher Says Delay in Raising U.S. Interest Rates Could Cause Recession (The Wall Street Journal blogs)

Watch Obamacare Architect Jonathan Gruber Explain Why "Lack of Transparency" Was Key to Passing the Health Care Law (Reason)

     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, November 10, 2014

Monday roundup (11-10-14)

Predictors of ’29 Crash See 65% Chance of 2015 [Worldwide] Recession (Bloomberg)

Why hopes of a global recovery may be 'far too optimistic': Martin Wolf, Chief Economics Commentator, Financial Times, says the financial sector remains "fundamentally fragile" and that is hampering the global economic recovery. (CNBC)



Mark Carney: No more bank bail-outs [globally]: Financial Stability Board, chaired by Bank of England Governor, unveils proposals for ending 'Too Big To Fail' banks (The Telegraph) Banks will need to hold big capital cushions [The Wall Street Journal via] (Marketwatch) [Governor of the Bank of England] Mark Carney welcomes 'too big to fail' bank reform plan (The BBC)


Why Europe Might Have Already Spiraled Into Deflation (The Business Insider)

Stagnant growth raises spectre of recession across eurozone: Hopes rise that the European Central Bank may opt for quantitative easing before Christmas to boost economic activity (The Guardian)

Greek deflation picks up in October, prices drop for 20th month (Reuters)

5 reasons Russia may face worse times (CNNMoney) Russia braces for long economic war with the West: Russia's central bank warns that capital outflows will reach $128bn this year and slashes its growth forecast to zero for 2015 as the ceasefire collapses in Ukraine by Ambrose Evans-Pritchard (The Telegraph)

China Oct inflation hovers near five-year low, deflation risks seen growing (Reuters)

[Bank of Japan Governor] Kuroda sprang easing surprise to head off damaging inflation forecast (Reuters)

[In the United States,] Subprime credit card lending swells (CNBC)

Obamacare Architect: Yeah, We Lied to The "Stupid" American People to Get It Passed (Town Hall)

     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, November 9, 2014

Sunday roundup (11-09-14)

85 richest now have as much money as poorest 3.5B (USAToday)

Europe braced for some dismal figures (Reuters)

The euro is in greater peril today than at the height of the crisis: The eurozone has no mechanism to defend itself against a drawn-out depression by Wolfgang Münchau (The Financial Times)

Consumers [are the] missing link in full-blown recovery [in the United States] (Marketwatch)

America Will Soon Have More Waiters And Bartenders Than Manufacturing Workers (ZeroHedge blog)

Elizabeth Warren: It’s time to work on America’s agenda (The Washington Post) Understanding and Overcoming America's Plutocracy by Jeffrey Sachs (The Huffington Post)

'Innate Potato' heads for market but GM watchdogs chip away at Simplot success (The Guardian)

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 GREAT GMA COVERUP INFOGRAPHIC (WalkByTheWay) GMO FREE USA (Facebook)

     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, November 8, 2014

Saturday roundup (11-09-14)

Ex-USSR leader Gorbachev: World on brink of new Cold War (The BBC) Mikhail Gorbachev warns of 'new Cold War' (BBCNews)



Regulators close small bank in California, bringing number of US bank failures to 17 in 2014 (The Associated Press) Frontier Bank, FSB D/B/A El Paseo Bank of Palm Desert CA had a troubled assets ratio of 72.6 percent. (BankTracker) Frontier Bank, FSB, Palm Desert, CA, Closed by Regulators – 17th Bank Failure of 2014 (Problem Bank List)

Unofficial Problem Bank list declines to 419 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, November 7, 2014

Friday roundup (11-07-14)

Quote of the Day: "France is the future of the euro zone, so if in 2017 it's Hollande versus Le Pen, she could win. And if that happens, I don't see how (German Chancellor Angela) Merkel and Marine Le Pen can do business together. I think at that point, that's (going to be) the main issue." -- Bob Janjuah, co-head of cross-asset allocation strategy at Nomura (CNBC)

Every man for himself: Economic policies are diverging in the developed world as deflation looms (The Economist)

Yellen Message to Europeans Divided on QE: Do Whatever It Takes (Bloomberg)

Clashes and arrests at end of Brussels anti-austerity protest (euronews) (Youtube)



'If Germany can’t pull European economy out of crisis – eurozone future in doubt' (Russia Today)

Financial crisis repeat could force Bank of England to bail out markets: Governor Mark Carney says central banks could have to step in after business lending shifts away from traditional banks (The Guardian)

US Consumer Borrowing up $15.9 Billion to Record (The Associated Press)

Fed's Yellen says weak fiscal support has slowed global recovery (Reuters)

Supreme Court to decide whether to gut ‘Obamacare’ (MSNBC blogs) Supreme Court Agrees To Hear New Challenge To Obamacare (The Associated Press)

Saved! Detroit Approved to Set Bankruptcy Plan in Action (NBCNews)

JPMorgan to cut 3,000 more retail banking 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.

Thursday, November 6, 2014

Thursday roundup (11-06-14)

Eurozone standstill poses 'major risk' to world growth, warns OECD: Organisation for Economic Co-operation and Development warns eurozone is "grinding to a standstill" and repeats call for bloc to launch quantitative easing as European Central Bank keeps interest rates on hold (The Telegraph) Why the Eurozone could derail the global economy (CBS Moneywatch)

All The Ways The Euro Crisis Is Actually Much Worse Than The Great Depression (The Business Insider)

ECB could pump €1tn into eurozone in fresh round of quantitative easing: Mario Draghi suggested the bank could act to prevent dangerous deflation in comments cheered by European investors (The Guardian) For Draghi, Promises Are Still His Main Policy Option (The New York Times)

BOE keeps interest rates at record low (Marketwatch) ECB Keeps Rates Unchanged as Draghi Tests Limits of Power (Bloomberg)

UK interest rates remain at record low of 0.5% (The BBC)

France, Germany and Italy urged to follow Spain’s lead to revive eurozone: Europe’s core countries must unlock growth potential in their economies with rigorous programme of reform, says OECD (The Guardian)

The centre cannot hold under austerity, in Britain or Europe: The crisis is polarising politics from Ireland to Spain, and Labour will sink unless it offers a real alternative (The Guardian)

German September industry orders disappoint, fuelling third-quarter growth fears (Reuters)

Thousands march in Belgium against austerity: Tens of thousands of Belgians have gathered in Brussels to protest against planned austerity measures by the new government. The march will kick off a month-long campaign against the reforms. (Deutsche Welle)

Euro zone ponders whether Greece needs more debt relief - sources (Reuters)

Janet Yellen Can't Say It, but the Republican Win [of the US Congress] Was Bad for Her (Bloomberg)

Fed Concern With Repeat of 1937 Blunder Echoed by Markets (Bloomberg)

Boehner touts bills to repeal Obamacare, build Keystone (Reuters) Boehner Warns Obama Not to ‘Burn Himself’ on Immigration Reform (ABCNews)

You’ll Never Guess What the New GOP Proposals Would Do to the Deficit (New York Magazine)

SNC-Lavalin to cut 4,000 jobs (The Associated Press)

Lanxess to cut 1,000 jobs worldwide (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.

Is it a recovery yet? (Weekly report, 11-06-14)

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 10,000 to a seasonally adjusted 278,000 in the week ended Nov. 1, the Labor Department said Thursday. That’s the second smallest number since the Great Recession and one of the lowest in 35 years." (Marketwatch)

Jobless Claims Continue to Decline (Bespoke Investments)

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, November 5, 2014

Wednesday roundup (11-05-14)

Anti-austerity 'Million Mask March' sweeps the globe: Activists protesting against austerity, mass surveillance and oppression have taken to the streets in some 481 cities worldwide. The Million Mask March was organized by the activist group Anonymous. (Deutsche Welle)

Eurozone economic weakness continues (The BBC) Weak demand hits the eurozone's private sector (Marketwatch) [At the same time:] Euro zone Sept retail sales much weaker than expected (Reuters) Eurozone Economy Still 'Limping Along' (The Associated Press)

Euro Area Limping Toward Deflation Fuels QE Calls as ECB Meets (Bloomberg) How will Europe’s economy escape the doldrums? (The Washington Post)

ECB Meeting Preview: Will Germany Push Eurozone Into A Triple Dip Recession? (International Business Times) Mario Draghi's efforts to save EMU have hit the Berlin Wall: If the ECB tries to press ahead with QE, Germany's central bank chief will resign. If it does not do so, the eurozone will remain stuck in a lowflation trap and Mario Draghi will resign by Ambrose Evans-Pritchard (The Telegraph) Central bankers to challenge Draghi on ECB leadership style (Reuters) Draghi Stress Tested as BOJ-Riksbank Moves Pressure ECB (Bloomberg)

From fringe to spotlight: European austerity breeds radical politics (The Globe and Mail of Toronto)

Euro zone ponders whether Greece needs more debt relief: sources (Reuters)

IMF critical of Portugal's waning fiscal, reform effort (Reuters)

Fall in fresh food prices [in the UK] fuels high street deflation: Shop prices fell for the 18th consecutive month in October, according to the British Retail Consortium (The Telegraph)

U.K. Services Slump to 17-Month Low as Growth Cools (Bloomberg)

Australia Seen Needing Stimulus to Avoid Recession (Bloomberg) Australia needs stimulus policies to avoid recession, Morgan Stanley says (The Sydney Morning Herald)

Is China’s Economy In Need of Shock Therapy?: China can’t grow out of is debt bubble with no pain. Why October’s data is no help. (Barron's)

[In the United States mid-term elections,] Republicans seize Senate, gaining full control of Congress (CNN) How Obama Lost the Senate: Democratic candidates couldn’t unburden themselves from the anchor of an unpopular president. (Bloomberg) Here's Why the Democrats Got Crushed—and Why 2016 Won't Be a Cakewalk (The New Republic) A Victory for the Left: Chin up, Democrats. Republicans may have won the Senate, but the country is headed your way. (Slate) Republicans take control of Congress: Can Obama, GOP end ‘perpetual conflict’? (FoxNews) After Republican rout, Obama tells voters: 'I hear you' (Reuters) LOL: The American People Have Spoken! (The Big Picture blog)

Fed issues rule to prevent oversized U.S. financial firms ["from becoming so big that their failure could shake the core of the U.S. financial market"] (Reuters)

Fed's Lacker says must better adapt bankruptcy code to financial firms (Reuters)

U.S. Mint temporarily sold out of Silver Eagles amid huge demand (Reuters)

Crashing Oil Prices Could Bring The US Fracking Boom To A Sudden And Disastrous End (The Business Insider)

[Candian fertilizer producer] Agrium to cut 500 jobs, sell some businesses (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.