Tuesday, April 21, 2015

Tuesday roundup (04-21-15)

Quotes of the Day:

"Near zero to negative sovereign debt yields in Europe represent the bubble of all investment bubbles, dwarfing even the Nasdaq bubble of 16 years ago." -- Doug Kass, head of hedge fund Seabreeze Partners Management. (CNBC)

"German 10yr Bunds = The short of a lifetime.  Better than the pound in 1993.  Only question is Timing / ECB QE" -- Bill Gross, Portfolio Manager of the Janus Global Unconstrained Bond Fund (Twitter)

The [World's] Debt Dilemma [April 17] (Project Syndicate)

BP sees 'massive' shock for North Sea as oil glut deepens: The world's over-supply of oil is like the deep slump in 1986. BP fears it may get worse as Iran's supply hits market and US shale hold firm by Ambrose Evans-Pritchard (The Telegraph)

Euro-Area Debt Levels Surge to Record, Led by Greece (Bloomberg) Europe's debt mountain just got bigger: Government debt levels across the monetary bloc have reached their highest levels since the introduction of the euro (The Telegraph) Key EU countries still in breach of deficit rules: Twelve European Union member countries logged a higher public deficit last year than they would normally be allowed under the bloc's Maastricht criteria. Astonishingly, Greece is not among the worst performers. (Deutsche Welle)

European Banks Are Paid To Borrow For First Time Ever As Euribor Goes Negative (ZeroHedge blog) Lenders Awash With Euros Pay Banks and Governments to Take Loans (Bloomberg)

Wary of brinkmanship, euro zone steers away from new deadlines for Greece, official says (Reuters)

Greece facing 'Lehman moment' as debt costs soar -- ["Well, first of all, the Grexit is not going to happen, in my view. ... If there was an exit of Greece from the European Union and an exit from the euro, that would be an amazing event for Europe. It means the beginning of the end for the European Union. And that's not a very happy picture. And I'm sure the decision makers in Europe fully realize that." -- Mark Mobius, executive chairman at Templeton Emerging Markets Group.] (CNBC)



Greece 'running out of money' as hopes of imminent deal to end debt crisis fade: Jeroen Dijsselbloem, the Dutch finance minister and leader of the Eurogroup says he still expects an agreement to be reached in the coming weeks (The Guardian)

UK budget shame: Britain has the third highest deficit in Europe and the Government is borrowing more than Greece (This is Money)

Debt Piles Up in Asia, Threatening Growth: Countries borrowed a lot during the crisis, and kept doing so afterward (The Wall Street Journal)

Does the Collapse of a Chinese Developer Signal the Start of More Defaults? (Bloomberg)

Chinese Economic Outlook "Skewed Heavily To The Downside," BNP Says (ZeroHedge blog)

Campaign Casts Hillary Clinton as the Populist It Insists She Has Always Been (The New York Times) The many ways in which Clinton’s populism rings untrue (The Atlanta Journal Constitution blogs)

Baker Hughes increases layoffs [from 7,000] to 10,500 (FuelFix)

     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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