Friday, February 6, 2015

Friday roundup (02-06-15)

Not kicking the habit: The world is still addicted to debt (The Economist)

Another economic crash is coming. How did this happen? – video: David Cameron says a second financial crash is imminent. If he's right, it's because the government bailed out the wrong industry, argues Renegade Economist host Ross Ashcroft. He says the last recession was brought on by too much debt. Today private debt is at the greatest level in recorded human history. By ignoring this and instead focusing on the banks, we are heading for economic armageddon. (The Guardian)

Europe at 'critical juncture' and faces prolonged period of stagnation and deflation unless millions of jobs are created (This is Money)

Germany must ease up on austerity to revive euro zone: UK Labour (Reuters)

Events Now In Motion In Greece That Will Create Worldwide Chaos (King World News)

Greece is just part of the global debt challenge: Proposals from McKinsey may not appeal much to Germany (The Financial Times) A World Overflowing With Debt: Does anybody still remember 2007? [Feb. 4] (Bloomberg)

Europe’s future depends on the success of a Greek deal: ‘The Taoiseach’s hardline rhetoric on Greece is short-sighted, because the consequences of failing to strike a deal with the new Greek government could be catastrophic for Ireland’ (The Irish Times)

Greece Could Run Out of Cash in Weeks: Request by Athens to Raise an Extra $5 Billion in Short-Term Debt Rejected (The Wall Street Journal)

Eurozone finance ministers to hold emergency meeting with Greece to solve debt stand-off (Agence France Presse) Eurozone gives Greece five days to come up with debt plan (Agence France Presse)

Isolated Greece wants no more bailout money with strings (Reuters)

The Two Europes: Greece failed to sell eurozone leaders on debt relief this week. That’s because culturally they’re living on different continents. (Slate)

Greeks swiftly move capital to Germany as crisis looms (Marketwatch)

Greek stand-off pushes Europe to the brink: The last thing Germany is going to do is cut a deal with Greece (The Telegraph) [And yet ...] Germany needs to cut Greece some slack:L If Germany and the “core” eurozone members want to keep the euro going, they will need to work out a more viable solution to the debt problems plaguing not just Greece but the entire eurozone periphery. (Fortune)

Greece: Are You Finally Ready to Do the Right Thing and Leave the Euro? by Charles Hugh Smith (of two minds blog)

What Is Plan B for Greece? by Kenneth Rogoff (Project Syndicate)

Long winter goes on for savers as Bank of England marks six years of record-low interest rates (This is Money)

Putin’s New Challenge: Propping Up Russia’s Ailing Banks (Bloomberg)

Early Look: Deflation Clouds Loom Over China’s Economy (The Wall Street Journal blogs) Deflation risks in China likely to climb (The Shanghai Daily)

Reserve Bank [of Australia] cuts growth forecasts and leaves door open for another rate cut (The Guardian)

Deflation Risk in U.S. Seen Rivaling Euro Area: Chart of the Day (Bloomberg)

Will S&P’s penalty for too-rosy mortgage securities ratings send a message? [Feb. 3] (The PBS Newshour)

This Depressing GIF Says A Lot About Our Student Debt Problem (The Huffington Post)

Alaska Governor Proposes ‘Painful’ Cuts in Face of $3.6 Billion Deficit: More Than 300 State Jobs Could Be Lost, Gov. Bill Walker Says (The Wall Street Journal)

Layoffs hit nearly 2-year high in Jan: Challenger (CNBC)

Staples and RadioShack deliver big hit to jobs (CNNMoney)

More layoffs at McDonald's; eight Illinois employers cutting 724 jobs (The Chicago Tribune)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

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