Friday, February 27, 2015

Friday roundup (02-27-15)

EU Commission urges France to cut deficit at quicker pace (Reuters)

Japan's war on deflation cast in fresh doubt: Japan's inflation rate has slowed for the sixth month in a row despite the Bank of Japan's massive monetary stimulus to spur growth. Falling prices put a damper on Tokyo's hopes to overcome years of deflation. (Deutsche Welle)

Forget Greece, Japan is the world's real economic time bomb: How Japan handles its government debt will have a bigger impact on the U.S. economy. (Fortune)

U.S. fourth-quarter GDP chopped to 2.2% from 2.6% (Marketwatch)

The one thing that could cut the economic recovery short: If you want a picture of the recovery's future, imagine a trade deficit stamping on the economy's face—forever. (The Washington Post blogs)

U.S. student loans could need $500 bln bailout (Reuters blogs)

FDIC Closes Puerto Rico's Doral Bank; Banco Popular Steps In -- ["'It is the largest bank failure in five years,' David Barr, a spokesman for the Federal Deposit Insurance Corp., said by phone."] (The Associated Press) Doral Bank of San Juan, Puerto Rico, had a troubled assets ratio of 196 percent. (BankTracker) ["This was a decent size bank a fairly large hit to the DIF" (= Deposit Insurance Fund).] (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.

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