Saturday, February 28, 2015

Saturday roundup (02-28-15)

Humiliated Greece eyes Byzantine pivot as crisis deepens: Neither side holds the upper hand in the strategic game of chicken which could still see Greece forced out of the euro by Ambrose Evans-Pritchard (The Telegraph)

What Greece Has to Do Now: Fix Its Economy (The Harvard Business Review)

China cuts rates again in face of weak demand, deflation risk (Reuters)

Study: Suicide Rise In Middle-Age Adults [in the United States] Linked To Recession (CBS DC)

February 2015: Unofficial Problem Bank list declines to 357 Institutions (Calculated Risk blog) [Meanwhile,] Number of Problem Banks [Within the OFFICIAL list] Declines for 15th Consecutive Quarter (Problem Bank List)

Doral Bank Collapses After Years of Financial Losses – Largest Bank Failure Since 2010 [-- failure posted here yesterday] (Problem Bank List)

RBS to Cut More Than 1,000 Jobs at U.S. Trading Unit, CFO Says (Bloomberg)

Dresser-Rand plans major job cuts [of almost 650 jobs] (The Houston Business 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.

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.

Thursday, February 26, 2015

Thursday roundup (02-27-15)

When do we decide that Europe must restructure much of its debt? by Michael Pettis (China Financial Markets blog)

Greece bailout saga strains German patience: Angela Merkel is likely to win the Bundestag vote to back the four-month bailout extension – but with grudging acceptance (The Guardian) Germany set to approve Greek bailout extension: Germany's parliament appears set to approve an extension of Greece's financial bailout. All eurozone member states must ratify the extension for it to take effect before Athens runs out of funds at the end of the month. (Deutsche Welle) Debt, drachmas and devaluation: A leading German economist has urged Athens to scrap its bailout deal and stop using the euro as lawmakers in Berlin gear up for a vote later this week aimed at keeping Greece in the common currency bloc. [Feb. 25] (Deutsche Welle)

Yanis Varoufakis interview: ‘Anything’s better than austerity': Greek finance minister insists deal with troika has not compromised his leftist principles (The Irish Times)

Greece Isn’t the Eurozone’s Only Political Headache: Greece and Europe have reached agreement, but political risk hasn’t gone away. Spain may yet pose headaches for investors (The Wall Street Journal)

Gas’s Drop Drives U.S. Into Deflation Territory: Consumer-price gauge shows 0.1% year-over-year decline in January, first since October 2009, amid sharp fall in gas costs (The Wall Street Journal) Key Measures Show Low Inflation in January (Calculated Risk blog)

Pew study: Americans still stressed despite improved economy (The Associated Press)

The US recovery story is a fraud: SocGen bear (CNBC)

When And Why Government Debt Could Become A Major Problem (Forbes)

Microsoft to cut 9,000 Nokia jobs in China (Marketwatch)

RBS to Cut More Than 1,000 Jobs at U.S. Trading Unit, CFO Says (Bloomberg)

KLM TO CUT UP TO 1000 JOBS (NL 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.

Is it a recovery yet? (Weekly report, 02-26-15)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

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 jumped by 31,000 to 313,000 in the seven days from Feb. 15 to Feb. 21, the Labor Department said Thursday." (Marketwatch)

Applications for US unemployment benefits jump to 313,000; level still points to solid hiring (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, February 25, 2015

Wednesday roundup (02-25-15)

Germany Sells Five-Year Debt at Negative Yield [For the First Time Ever] (The New York Times blogs)

EU gives France to 2017 to cut deficit, Italy, Belgium in clear (Reuters)

Greek PM briefs party lawmakers on bailout pledges amid signs of rancor over concessions (The Associated Press) Greece to stop privatisations as Syriza faces backlash on deal: The Syriza leadership risks falling between two stools as it tries chip away at the austerity regime without triggering Greece's ejection from the euro by Ambrose Evans-Pritchard (The Telegraph)

China central bank newspaper warns of rising deflation risk (Reuters)

[US] Regulator warns of 'Armageddon' cyber attack on banks (USAToday)

Morgan Stanley Agrees to $2.6 Billion Mortgage Settlement (Bloomberg)

[Meanwhile,] BNY Mellon in forex settlement talks with U.S., N.Y. - sources (Reuters)

City schools face $60 million deficit even without state cuts [Feb. 17] (The Baltimore Sun)

RI on track to run $27M deficit this year: Gov. Raimondo's plan to eliminate shortfall coming next month (WPRI)

     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, February 24, 2015

Tuesday roundup (02-24-15)

Deflation Is Overriding Theme in Global Economy: Harris: Bank of America Merrill Lynch Head of Global Economic Research Ethan Harris discusses the economy, central banks monetary policies and risks of deflation. He speaks on “Bloomberg Surveillance.” [VIDEO] (Bloomberg)

Deflation Threat Grows in Europe (Dow Jones Business News) Greece leads eurozone's slide into deflation: Inflation slumps to -0.6pc across the monetary bloc as 17 out of 19 countries record negative price growth (The Telegraph)

Euro zone backs Greek aid extension, seeks clearer reforms (Reuters) After Bailout Plan Approval, Greece Faces a Balancing Act (The New York Times)

The IMF Slammed Greece’s Proposed Overhaul to Its Bailout. Here’s Why It Matters (The Wall Street Journal blogs)

US housing market recovery 'faltering' (The BBC) U.S. existing home sales at nine-month low, supply limited [Feb. 23] (Reuters) Fewer Homes for Sale Pushes up US House Prices in December (The Associated Press)

The strong dollar is the biggest threat to the economic recovery (The Washington Post blogs)

[French steel pipe maker] Vallourec slips into net loss, to cut 1,400 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.

Monday, February 23, 2015

Monday roundup (02-23-15)

This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300% [= Japan (400%), Ireland (390%), Singapore (382%), Portugal (358%), Belgium (327%), Netherlands (325%), Greece (317%), Spain (313%), and Denmark (302%)] (ZeroHedge blog)

France seeks to delay deficit target until 2018 - [according to Germany's business daily] Handelsblatt (Reuters)

Greece delays sending reforms to euro zone till Tuesday (Reuters)

Greece: We'll fight on against austerity (CNNMoney)

Why Greece will never repay its debt (CNBC)

Hard times ahead for Ukraine with massive job cuts and price hikes on the way (euronews)

One-Third of Americans Living on Financial Edge (NBCNews)

U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds (Bloomberg)

Oilfield services company [= Archer Ltd] to cut 1,000 jobs (The Houston Business 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.

Sunday, February 22, 2015

Sunday roundup (02-22-15)

Denmark ready to impose capital controls to protect currency: Central bank could take drastic measures to prevent flow of money into the country and maintain its peg to the euro [Feb. 20] (The Telegraph)

Ten days that shook the euro; how Greece came to the brink (Reuters)

Spain Said to Lead EU Push to Force Terms on Greece (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.

Saturday, February 21, 2015

Saturday roundup (02-21-15)

How the eurozone could tear apart: A standoff between Greece and its creditors nearly ended in the breakup of the euro project. How could a country leave the currency union? (The Telegraph)

Greece Faces Monday Deadline On Reform Proposals (The Voice of America) Finance minister: Greece to submit reforms list by Sunday (The Associated Press)

How Greece Escaped a Major Crisis — for Now: By obtaining a bailout extension from its European creditors, the beleaguered country avoids bankruptcy. But its long-term fiscal outlook remains bleak. (The Atlantic) Greece’s debt deal isn’t the end of eurozone drama (Marketwatch) Syriza’s honeymoon over as Greece strikes debt deal with EU: Alexis Tsipras says long struggle lies ahead while finance minister describes deadlines as ‘inhuman’ (The Observer)

Greece had a chance to make the euro zone work better — they blew it [The Economist via] (The Business Insider)

Unofficial Problem Bank list [in the United States] declines to 378 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, February 20, 2015

Friday roundup (02-20-15)

Eurozone ministers give Greece a four-month bailout extension (The Los Angeles Times) Greece bailout extended for four months (euronews)



Greece averts bankruptcy and softens austerity in last-ditch deal: Greece claims to have defeated 'exhorbitant demands' for more cuts and averted suffocating primary surpluses that would choke growth for years by Ambrose Evans-Pritchard (The Telegraph)

Greece deal is first step on the road back to austerity: The extension of the Greek bailout with barely a concession to Yanis Varoufakis’s demands proves only that Europe wants him to stick with the programme (The Guardian) Austerity Won't Work in Greece: Blanchflower: Dartmouth College's David "Danny" Blanchflower discusses the euro-area finance ministers reaching an accord that would keep bailout funds flowing to Greece in return for a commitment to meet certain conditions. He speaks with Bloomberg's Pimm Fox on "Taking Stock." [VIDEO] (Bloomberg)

ECB rules out Greek capital controls after bailout extension (Reuters)

Russia's debt downgraded to junk by Moody's: Move follows S&P’s downrating as agency predicts Ukraine crisis, falling oil price and rouble plunge will bring further gloom (The Guardian)

What’s Wrong with David Leonhardt’s NYT Piece on Inequality? (New Economic Perspectives)

     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, February 19, 2015

Thursday roundup (02-19-15)

Deflation can be a good thing. But today’s version is pernicious (The Economist) The high cost of falling prices: Low or negative inflation is spreading around the world. That is more of a worry than it sounds (The Economist)

ECB deflation fears sparked QE launch [according to minutes] (CNBC)

French inflation turns negative (The BBC) Inflation négative: bonne ou mauvaise nouvelle? (Le Figaro)

Greece, eurozone in last chance to end debt standoff (Agence France Presse)

Germany may have just put the nail in Greece's Euro zone coffin: In a shocking turn of events, Germany’s finance ministry rejected Greek’s request for an extension to its expiring bailout agreement. This has only accelerated the financial panic in Greece. (Fortune) Greece’s Request for Loan Extension Is Rejected by Germany (The New York Times) Germany refuses Greece an honourable surrender over austerity: Athens’ decision to accept a eurozone loan extension shows the troika did not really want to negotiate with Syriza - it wanted capitulation (The Guardian blogs) Greece defiant as Germany tears up last-ditch EMU compromise on austerity: 'There is no macro-economic argument for further fiscal tightening. The only reason for doing so is on punitive grounds,' says Greece's Yanis Varoufakis by Ambrose Evans-Pritchard (The Telegraph)

The Catastrophic Costs of Extend-and-Pretend Are About to Crush Europe by Charles Hugh Smith (of two minds blog)

Ka-ching: Euro exit would cost Greece dear, shake eurozone (The Associated Press)

Greek Gov’t Could Collapse Before Grexit, Absent EU Debt Accord, Citi Says (Barron's blogs)

Worried depositors rush to pull cash out of Greek banks (CNBC)

Europe's firewalls may not be enough to stem Grexit investor panic (Reuters)

Greek Finance Minister Varoufakis: 'Austerity Has Done Nothing to Solve Greece's Problems': Greek Finance Minister Giannis Varoufakis has had little luck convincing his EU counterparts that Athens needs a debt cut. He speaks with SPIEGEL about why austerity has failed, how aid conditions are like waterboarding and where the bailout money went. (Spiegel Online)

Is The Oil Price Decline a Sign of Impending Deflation [in the United States]? (American Thinker)

Philly Fed Manufacturing Survey declines to 5.2 in February (Calculated Risk blog)

Subprime Rising (The Big Picture blog)

White House economic report: Higher wages needed to make up for past paycheck stagnation (The Associated Press)

Wal-Mart Raises Pay to Keep Workers as Labor Market Tightens (Bloomberg) Wal-Mart's raise underscores the poor condition of most low-wage workers (The Los Angeles Times) As Walmart Gives Raises, Other Employers May Have to Go Above Minimum Wage (The New York Times)

Cumbria County Council [in the UK] confirms 1,800 jobs will be cut (The BBC)

Kirklees Council [in the UK] to cut over 1,000 jobs (The BBC)

     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, 02-19-15)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

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 21,000 to 283,000 in the seven days from Feb 8 to Feb. 14, 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, February 18, 2015

Wednesday roundup (02-18-15)

How central banks have lost control of the world: From engaging in 'competitive easing' to provoking international currency wars, have we finally reached the limit of what monetary policy can achieve? Click on the countries below to find out (The Telegraph)

Draghi's Dangerous Bet: The Perils of a Weak Euro: The recent decision by the European Central Bank to open the monetary floodgates has weakened the euro and is boosting the German economy. But the move increases the threat of turbulence on the financial markets and could trigger a currency war. (Spiegel Online)

Europe looks to securitized debt to aid flagging economy (Reuters)

Greece to Propose Extension of European Union Bailout Program (The New York Times) Greece expected to seek loan extension from skeptical euro zone (Reuters) Greece confirms it will ask for bridging loan from eurozone partners: Leaked document suggests Athens remains committed to repealing some austerity measures attached to original bailout (The Guardian)

Extension of bailout program for Greece essential to avoid European debt crisis [The Yomiuri Shimbun via] (The Chicago Tribune)

Greece offers debt forgiveness to its poor (Agence France Presse)

ECB tightens pressure on Greece with cap on bank funding (Reuters)

Greek banks to run out of collateral in 14 weeks: JP Morgan (Reuters)

ECB risks crippling political damage if Greece forced to default: If Greece defaulted, the German people would discover instantly that a large sum of money committed without their knowledge and without a vote in the Bundestag had vanished by Ambrose Evans-Pritchard (The Telegraph)

Why the U.S. will have to bail out Greece (Marketwatch)

Portugal’s public debt reaches 224.5 billion euros in 2014 [= "between 127.9 percent and 128.7 percent of gross domestic product"] (macauhub)

Bank of England stands pat [on benchmark interest rate], but divisions emerge (Marketwatch) Differences emerge among Bank of England rate-setters in February (Reuters)

Why I have resigned from the Telegraph: The coverage of HSBC in Britain's Telegraph is a fraud on its readers. If major newspapers allow corporations to influence their content for fear of losing advertising revenue, democracy itself is in peril. by Peter Oborne (Open Democracy)

More stimulus expected as Japan exits recession (Agence France Presse)

US producer prices post record drop on tumbling energy costs (Reuters)

Growth in Slow Start as U.S. Factories Curb Output: Economy (Bloomberg)

Housing Starts Fall as U.S. Single-Family Projects Decline (Bloomberg)

Look for more energy deflation this year (CNBC)

FOMC Minutes: "Many participants ... inclined toward keeping the federal funds rate at its effective lower bound for a longer time" (Calculated Risk blog) Fed officials worried about hiking rates too soon - minutes (Reuters)

U.S. Household Debt Rises Slightly in to $11.83 Trillion (Dow Jones Newswires) Americans struggle to keep up with new borrowings (Marketwatch) Student loan debt piles up to $1.16 trillion: NY Fed (CNBC)



Interconnected Banks Pose the Greatest Threat to the U.S. Financial System (Cliff Küle’s Notes blog)

L.A.’s aging water pipes; a $1-billion dilemma (The Los Angeles 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.

Tuesday, February 17, 2015

Tuesday roundup (02-17-15)

Greece will not compromise with euro zone, Tsipras says (Reuters)

Greek Banks Need More Emergency Funds (Bloomberg) Q and A: A struggling Eurozone state, its debt, and its banking system (CityAM) Hans-Werner Sinn: "Impose Capital Controls In Greece Now To Avoid Another Cyprus" (ZeroHedge blog)

Crucial Talks Over Greece's Debt Broke Down. What's Next? (The Associated Press) Greece bailout talks: the options: European capitals and financial markets assume that a deal will be done but with 72 hours to find a solution, the possible outcomes are limited (The Guardian blogs)

The only way for Greece is out of the eurozone: Greece’s new government must bite the bullet, declare itself bankrupt and break free from the eurozone – only then can its economy and society recover (The Guardian)

Former White House Budget Director [David Stockman] Warns Greek Crisis Now Threatening The Entire Global Financial System (King World News)

Inflation [in the UK] tumbles to record low (The Press Association)

Chinese home prices fall for ninth month (The BBC)

[In the United States,] Inequality Has Actually Not Risen Since the Financial Crisis (The New York Times)

GOP Congress On The Verge Of A Meltdown (Forbes)

U.S. energy companies slash jobs as oil prices slump (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, February 16, 2015

Monday roundup (02-16-15)

G20 Leaders Plead with Fed Not to Raise Rates (Armstrong Economics)

Negative rates [in Europe] to shake up financial system, say experts [The Financial Times via] (CNBC)

Greece bailout talks break down after Athens rejects 'unacceptable' eurozone demands: Creditors present ultimatum as finance minister insists other members must water down austerity conditions if country is to reach ‘honourable agreement’ (The Guardian) Greek crisis talks collapse in acrimony as Syriza defies EMU: 'The only way to solve Greece is to treat us like equals; not a debt colony,' says Greek finance minister by Ambrose Evans-Pritchard (The Telegraph)

Japan beats recession but the good news ends there: Sluggish growth, lack of expansion and failing ‘three-arrow strategy’ in the world’s third largest economy may prompt a currency war (The Guardian)

     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, February 15, 2015

Sunday roundup (02-15-15)

Greece, confident as EU meeting looms, sticks to no-austerity pledge (Reuters) Greece plays for time as bailout clock ticks down (Agence France Presse)

Greek Exit From Eurozone Would Be Worst Option, Says Bailout Fund Chief: Interview Comes Ahead of Meeting of Eurozone Finance Ministers in Brussels (The Wall Street Journal)

Greek Euro exit is 'inevitable', former UK Chancellor Ken Clarke warns: Britain must insulate itself from the effects of a 'Grexit', the Tory MP says, ahead of a tense meeting of eurozone finance ministers in Brussels (The Telegraph)

Eurozone must not allow Greece to become another Lehman Brothers: To many, Greece seems unimportant – just as the collapsed US bank once did. Would letting it go trigger a global crisis? (The Guardian)

Will Europe Be Engulfed By Massive Bank Runs And Economic Chaos? (King World 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.

Saturday, February 14, 2015

Saturday roundup (02-14-15)

Greek drama puts eurozone at risk: The outbreak of investor optimism that greeted signs of progress for Greece and Ukraine rests on fragile foundations (The Telegraph)

[In the United States,] Unofficial Problem Bank list declines to 386 Institutions (Calculated Risk blog)

Capitol City Bank & Trust Co, Georgia, Collapses – Largest Bank Failure of 2015 [as posted here yesterday] (Problem Bank List)

Tesco [Britain's biggest retailer] to cut up to 10,000 jobs: Thousands of staff face the axe at Tesco offices and in stores as chief executive Dave Lewis looks to cut costs (The Telegraph)

Oil and gas layoffs not yet showing up in jobless totals (Gannett Louisiana)

     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, February 13, 2015

Friday roundup (02-13-15)

Man Who Predicted Collapse Of Euro Against Swiss Franc Warns Current Global Financial System Will Cease To Exist (King World News)

Inflation is dead: It’s below 1 percent in the U.S., U.K., Europe, China, and Japan (The Washington Post blogs)

Mega-droughts to become the new normal (CBSNews)

Italy is Europe’s ticking time bomb (The Washington Post blogs)

Greek Euro Exit Would Be 'Catastrophic,' Rickards Says: James Rickards, chief global strategist at West Shore Funds, and Sebastien Galy, senior currency strategist for Societe General, talk about the outlook for a compromise in the standoff between Greece and the European Union over Greece's debt bailout. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Bloomberg)

White House warns Europe on Greek showdown: Washington blames Europe for the lack of global recovery and is losing its patience with EMU creditor states that fail to pull their weight by Ambrose Evans-Pritchard (The Telegraph)

Greek failure to pay official lenders could trigger CDS payments - lawyers (Reuters)

New Ukraine Bailout Deal May Mean MultiBillion-Dollar Pain for Creditors (The Wall Street Journal blogs)

The Fed Theoretically Can Never Raise Rates: Rickards: West Shore Funds' James Rickards, author of "The Death of Money," discusses the currency wars and Fed policy with Bloomberg's Trish Regan on "Street Smart." (Bloomberg)

US Regulators Close Small Georgia Bank (The Associated Press) Capitol City Bank & Trust Company of Atlanta GA had a troubled assets ratio of 454.3 percent. (BankTracker)

United Airlines to cut about 1,150 jobs at 16 U.S. airports (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, February 12, 2015

Thursday roundup (02-12-15)

Central banks take extreme action to stave off deflation (The Financial Times)

Sweden cuts rates below zero and starts QE (The BBC) Sweden cuts rates below zero as global currency wars spread: Morgan Stanley warns that the world is revisiting the “ghosts of the 1930s” as one country after another tries to steal a march on others by devaluing first by Ambrose Evans-Pritchard (The Telegraph)

Iceland convicts bad bankers and says other nations can act (Reuters)

Greece debt talks to resume Monday after breakdown (USAToday) Tsipras and Merkel prepare for showdown after Greece 'torpedoes' joint statement: Alexis Tsipras will clash with Angela Merkel at an EU summit today after the Greek prime minister personally intervened to block a provisional agreement between his country and the eurozone on Wednesday night (The Telegraph)

Greece agrees to talk to creditors in EU debt progress (Reuters)

Will Greece Ever Get Out of Debtor’s Prison? (The New York Times blogs)

UK heading for deflation says Bank of England Governor Mark Carney: Mark Carney says that while inflation is set to enter negative territory, that UK should not fear deflationary spiral (The Telegraph)

[Meanwhile] Household debt [in the UK] to grow three times faster than wages (Ekklesia)

Americans don’t buy claim of improved economy; still in recession, 65% say (The Washington Times)

Harvard study: Dodd-Frank actually made “Too Big to Fail” even bigger (Hot Air)

Canada's Cenovus Energy to cut 800 jobs as losses deepen (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, 02-12-15)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

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 increased by 25,000 to 304,000 in the seven days from Feb 1 to Feb. 7, 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, February 11, 2015

Wednesday roundup (02-11-15)

Greece and eurozone in stalemate over debt burden: First serious negotiations between country and EU finance ministers fail even to build framework for future talks (The Guardian) Greece and EU Vow to Keep Talking: Eurozone Finance Ministers Make No Joint Statement After Six Hours But Hope for Plan by Monday (The Wall Street Journal) EU, Greece bailout talks falter (CNBC)



If the Greek olive branch is rejected, Europe may fall: The new despots who are trying to persuade us that Europe’s problem is Greece are putting the European project itself at risk (The Guardian)

Germany faces impossible choice as Greek austerity revolt spreads: EU elites who forced a currency experiment on countries [= Portugal, Italy, Greece, Spain?] not ready for it have only themselves to blame by Ambrose Evans-Pritchard (The Telegraph)

China's Pile of Debt Keeps Rising: Why disinflation raises debt stakes for China (Bloomberg)

FMC Technologies to cut about 2,000 jobs (fuelfix blogs)

Kennametal offers buyouts to 1,000 U.S. white-collar workers (TribLive)

Target laying off 550 in Minneapolis after Canada failure (Twin Cities Pioneer Press)

     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, February 10, 2015

Tuesday roundup (02-10-15)

McKinsey Study: More Debt & Not Much Deleveraging Since The Financial Crisis (Cliff Küle’s Notes blog) The world is in debt, not just Greece: There were numerous promises to tackle debt after the global financial crisis in 2007. But eight years on, consultancy McKinsey and Co says the world's debt mountain is now almost $200 trillion - up by $57 trillion. Kirsty Basset reports. (Reuters)



Tim Geithner: Europe in a worse spot than Japan (CNNMoney)

Denmark just joined the deflation club as it scrambles to defend its currency peg (The Business Insider) Danish bank charges ordinary customers for deposits as negative interest rates bite [The Wall Street Journal via] (Marketwatch)

Greece's last minute offer to Brussels changes absolutely nothing: Greece has escalated its demands while seeming to offer concessions, but at least it is smiling again by Ambrose Evans-Pritchard (The Telegraph)

What happens if Greece exits the eurozone? Three big questions explained (The Financial Post)

Greece threatens tilt to Russia and China unless Europe yields: “We have other ways of finding money. It could be the United States, it could be Russia, it could be China" said the Greek defence minister by Ambrose Evans-Pritchard (The Telegraph)

Q&A: What the $18 Trillion National Debt Means for the U.S. Economy (The Wall Street Journal blogs)

Halliburton to Cut Up to 6,500 Jobs (Houston Press blogs)

Oil layoffs could come back to haunt the industry -- ["energy companies could find themselves in a situation later where skilled workers are hard to replace"] (CNBC)

     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, February 9, 2015

Monday roundup (02-09-15)

The World's Best Known Global Shipping Index has Crashed To Its Lowest Level Ever (ZeroHedge blog)

US defends unruly Greece as Europe steps up 'Grexit' threats: Germany’s vice-chancellor said "zero chances" that his country will respond to Greek demand for Nazi war reparations by Ambrose Evans-Pritchard (The Telegraph)

Greece's leaders stun Europe with escalating defiance: "The euro is like a house of cards. If you pull away the Greek card, they all come down,” says Yanis Varoufakis, the Greek finance minister by Ambrose Evans-Pritchard (The Telegraph)

Cameron holds emergency talks as fears rise of Greek exit from eurozone (The Herald of Glasgow, Scotland)

Historically speaking, Germany a bigger deadbeat than Greece: Germany's debt defaults after the two world wars dwarf anything Greece has done, economists say (The Canadian Broadcasting Corporation)

     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, February 8, 2015

Sunday roundup (02-08-15)

Defiant Greek PM sets up EU clash with bailout rejection, austerity rollback (Reuters) Prime Minister of Greece Will Not Prolong Bailout (The New York Times)

Tsipras favours Greek jobless over creditors in defiant policy speech: Prime minister says government’s first priority is to tackle humanitarian crisis caused by years of austerity (The Guardian)

Greek finance minister says euro will collapse if Greece exits (Reuters)

Alan Greenspan predicts Greek exit from eurozone inevitable: Greenspan said it was "just a matter of time" before everyone recognized an exit from the Eurozone as the best remedy to the Greek debt crisis. (United Press International) [And he adds: "The problem is that there there is no way that I can conceive of the euro of continuing, unless and until all of the members of eurozone become politically integrated - actually even just fiscally integrated won't do it."] (The BBC)

Deflation set to hit the UK for first time in more than 50 years: Bank of England set to confirm period of falling prices is on the cards in official forecasts (The Daily Mail)

     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, February 7, 2015

Saturday roundup (02-08-15)

Global debt pushing Eurozone to ruin (The Scotsman)

[In Italy,] Finmeccanica poised to cut 3,000 jobs over two years-update: CEO tells Financial Times goal is to boost growth (Gazzetta del Sud)

Unofficial Problem Bank list [in the United States] declines to 387 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, 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.

Thursday, February 5, 2015

Thursday roundup (02-05-15)

Red alert! 12 central banks cut rates this year (CNNMoney)

Draghi’s Negative-Yield Vortex Draws in Corporate Bonds (Bloomberg)

France must cut structural budget deficit more this year (Reuters)

No more orders or austerity from Europe, Greek PM says (Reuters)

Will Russia bail out Greece?: Greece's new government could be looking to Russia for a way out of its debt spiral after the European Central Bank announced tightening the screw on Greece's banking system. (Deutsche Welle)

Bank of England keeps interest rates at 0.5%: Financial markets are now not expecting a rates to move higher until mid-2016 (The Independent) Bank of England holds interest rates at record low of 0.5 per cent and keeps £375bn quantitative easing programme in February (CityAM)

U.S. growth may sputter with productivity and population growth so low (Marketwatch)

ALBERT EDWARDS: If the US measured inflation like Europe, then they'd be freaking out about deflation too (The Business Insider)

RadioShack declares bankruptcy (CNNMoney) Nooo! RadioShack files for bankruptcy, will sell or shutter its 4,000 stores (PCWorld) Why is bankruptcy a kiss of death for retailers? (The Dallas Morning News)

Weatherford International cuts 8,000 jobs as oil industry layoffs continue (Fortune)

Siemens Said to Plan 7,400 Job Cuts as CEO Reduces Costs (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, 02-05-15)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

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 11,000 to a seasonally adjusted 278,000 in the seven days ended Jan 31, 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, February 4, 2015

Wednesday roundup (02-04-15)

Global debts rise $57tn since crash (The BBC) Debt mountains spark fears of another crisis (The Financial Times)

World heading for financial crisis worse than in 2008 — China’s Dagong rating agency head: A setback in the growth model focused on credit-based consumption may become a source of a new crisis (TASS)

Baltic Dry Down 90% Of Days Since Cramer "Stressed Its Importance"; Crashes To New 29-Year Low (ZeroHedge blog)

Deflation: Why Europe’s Problem Is Everyone’s Problem (Knowledge at Wharton)

ECB cancels soft treatment of Greek debt in warning to Athens (Reuters) [Peter Boockvar, chief market analyst at The Lindsey Group: "This news will likely scare depositors and result in further bank runs" (CNBC)]

EU's Schulz warns Greece risks national bankruptcy-newspaper (Reuters)

As Greece Rebels, the Notion of Debt Forgiveness Returns (The New York Times blogs)

How Greece could accidentally stumble out of the euro (CNNMoney)

Three Greek banks tap two billion euros in emergency funding: sources [Feb. 3] (Reuters) Greece seeks ECB bridging funds, vows to respect EU rules (Reuters)

It's not just Greece and Spain that need their debt restructuring: The situations now faced by European countries are comparable to those in far poorer countries going back decades, and continuing today (The Guardian)

IMF questions sustainability of public debt of Portugal (MacauHub)

Bill Browder: Hermitage Capital Management CEO Bill Browder describes the series of events that unfolded when he began to uncover corruption in Russia in his book "Red Notice." (The Daily Show with Jon Stewart)



China pumps $100 billion into banks to boost economy (CNNMoney) China Moves to Free Up Money in Its Economy (The New York Times)

Devaluation by China is the next great risk for a deflationary world: China is not alone in facing a dilemma as deflation spreads and beggar-thy-neighbour currency wars become the norm by Ambrose Evans-Pritchard (The Telegraph)

China’s Total Debt Load Equals 282% of GDP, Raising Economic Risks (The Wall Street Journal blogs)

Money issues are still really stressing Americans out (CNNMoney)

Can't stop, won't stop: Paul Krugman's never-ending call for more spending (The Week)

Why Warren will run against Clinton in 2016 by John LeBoutillier, former member of the US House of Representatives (R-N.Y.) (The Hill blogs)

"Puerto Rico is broke," island's largest daily says (La Prensa)

     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.