Monday, June 1, 2015

Monday roundup (06-01-15)

The liquidity timebomb - monetary policies have created a dangerous paradox: Central bank responses to the financial crisis are feeding booms and bubbles while market illiquidity will eventually trigger a bust and collapse by Nouriel Roubini [Project Syndicate via] (The Guardian) VELOCITY of Money Below Great Depression Levels (Armstrong Economics)

Sluggish factory growth [in Europe, Asia, and the Americas] puts central bank stimulus in spotlight (Reuters)

EU leaders stage late-night mini-summit to try to defuse Greek crisis: Outcome unclear after ECB and IMF chiefs join Merkel and Hollande to seek joint position on negotiations over Greece bailout (The Guardian) IMF, ECB heads join late-night Greek debt talks in Berlin: After talks that lasted well into the night, the leaders of Germany and France, along with Greece's international creditors, have agreed to work with "real intensity" to reach a deal with Athens in the coming days. (Deutsche Welle) European Leaders Deciding On Greece's Fate Agree That Talks Must Intensify (Bloomberg) European, IMF leaders agree to work intensely in Greek debt talks (Reuters)

Draghi Deflation Relief Means Little With Greek Threat Unsolved (Bloomberg)

Greece Needs a New Government to Avert Bankruptcy Say Analysts: Goldman Sachs says the current government has reached the end of the road after failing to deliver an unrealistic promise (Time)

Greece must stop hoping for a miracle - it needs to leave the euro: The best way for Greece to relearn the importance of economic orthodoxy is for it to test to destruction its own monetary policy, its own tax system and its own-self imposed rules (The Telegraph)

What Would Greek Capital Controls Look Like?: Without a bailout deal sometime soon, Greece could face years of restrictions on what its citizens do with their money. (Bloomberg)

Will the ECB play its trump card over Greece's future? -- ["If the ECB pulled the plug, then Greece's banks would collapse."] (The BBC)

Germany dominance over as demographic crunch worsens: Germany's workforce will shrink by 6m over the next 15 years, declining even faster than Japan's by Ambrose Evans-Pritchard (The Telegraph)

Japan's Amari: must be careful about declaring end to deflation (Reuters)

Argentina Is Racking Up Debt Even Faster Than During Its 2001-2002 Crisis: The country's budget balance swung into a big deficit in March, from a modest surplus only a year earlier (Bloomberg)

"The Fed Has Been Horribly Wrong" Deutsche Bank Admits, Dares To Ask If Yellen Is Planning A Housing Market Crash (ZeroHedge blog)

The Dick Fuld Denial (BloombergView)

A former Reagan aide says Fox News is bad for Republicans. Is it? (The Washington Post blogs) The Uncomfortable Truth About The Political Nature Of Fox News: It's Not "Entertainment," It's The Engine Driving The GOP Agenda (MediaMatters for America blogs) [Continuation of the discussion left off @] (Economic Signs of the Times blog)

[Gov.] Walker taps mediator, mails 10,000 layoff notices amid Alaska budget standoff (KTUU)

No budget deal means 9,451 MN workers to get layoff notices (Minnesota Public Radio)

Malaysia Airlines CEO says carrier "technically bankrupt", set to cut [6,000] jobs, routes (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.

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