Friday, July 31, 2015

Friday roundup (07-31-15)

Wage growth slows sharply in second quarter [in the United States] (USAToday) US wage growth falls to record-slow pace in 2nd quarter (The Associated Press)

Jimmy Carter: The U.S. Is an "Oligarchy With Unlimited Political Bribery" (FirstLook) Jimmy Carter: U.S. Is an 'Oligarchy With Unlimited Political Bribery': The 39th president said the 'Citizens United' ruling 'violates the essence of what made America a great country in its political system' (Rolling Stone)

Rick Perry Has Finally Discovered the Wonders of Financial Regulation (New Republic)

[Large Financial Firms Are] Still Too Big to Fail by Simon Johnson (Project Syndicate)

Fact Sheet: Glass-Steagall Financial Reform Law and Efforts to Reinstate It (Better Markets)

Ingram Micro Reports Q2 Loss, Plans Layoffs [Of Up To 540 Persons] In $100 Million Cost-Cutting Program (CRN)

Japan spending slump heightens chance of second quarter contraction (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, July 30, 2015

Thursday roundup (07-30-15)

Greece crisis escalates as IMF witholds support for a new bail-out deal: Talks over new rescue package are derailed after less than a week as IMF seeks explicit assurances over debt relief from the Europeans (The Telegraph) IMF board says Fund cannot join Greece bailout talks now - FT (Reuters) €86bn IMF cannot join Greek rescue, board told [The Financial Times via] (CNBC) Greek bailout in jeopardy as IMF doubts grow (The Times of London)




Who’s Nexit?: As many as five other eurozone countries are flirting with trouble [= Portugal, Spain, Ireland, France, and Italy]. Could one of them be the first to leave the common currency? (Foreign Policy)




U.S. economy didn’t grow as fast as we were told from 2012 to 2014 (Marketwatch) The post-recession economy is worse than we thought: Revisions in previous years’ data show that the economy has grown more slowly following the recession than we originally thought. (Fortune)

The American People Deserve to Know Where Candidates Stand on Glass-Steagall (The Huffington Post)

Brazil central govt posts $2.43 bln June primary budget deficit (Reuters)

Shell Cuts 6,500 Jobs and Slashes Spending on Prolonged Downturn (Bloomberg) Royal Dutch Shell Profits Continue to Fall, Prompting Layoffs (The New York Times)

British Gas owner Centrica cuts thousands of jobs [= 6,000]: Scaling back of energy company’s business comes despite a doubling in profits at residential power supply business (The Guardian)

Mondelez layoffs [numbering 600] ahead in Chicago, announces latest supply chain investment (FoodDive)

Atomic Weapons Establishment to cut 500 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, 07-30-15)

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.)

"New applications for U.S. unemployment benefits rose by 12,000 to 267,000 in the seven days ended July 25, the Labor Department said. The rise was less than expected." (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, July 29, 2015

Wednesday roundup (07-29-15)

Rising global debt is increasing the risk of another financial crisis (The Los Angeles Times)

European 'alliance of national liberation fronts' emerges to avenge Greek defeat: For the pony-tailed leader of Spain's Podemos movement, the Leninist lesson of Greece is that revolutionary forces must show an iron fist by Ambrose Evans-Pritchard (The Telegraph)

IMF's Lagarde: Greek debt restructuring 'inevitable': The head of the International Monetary Fund, Christine Lagarde, has insisted that any new bailout program for Greece requires significant restructuring of the cash-strapped eurozone nation's massive debt load. (Deutsche Welle)

Alexis Tsipras Faces Race Against Time to Secure Greece Bailout Deal: Talks between Athens and troika to begin after damaging weeklong holdup, while Syriza party cracks deepen (The Wall Street Journal) Greece's Tsipras on shaky ground, warns of elections (CNBC)

Grexit threat remains until Greece secures debt relief deal: PM (Xinhua)

U.S. Importers and Greek Suppliers Stymied by Cash Controls (The New York Times)

The Greek Warrior: How a radical finance minister took on Europe—and failed. (The New Yorker)

How Germany Prevailed in the Greek Bailout (The New York Times)

French unemployed number creeps up to new record (Marketwatch)

Agricultural Crisis In France: Farmers Block Highways, Set Pigs Loose In Supermarkets To Protest Market Conditions (International Business Times)

Italy needs 20 years to tackle jobless rate: IMF (The Local)

IMF Says Japan’s Growth to 2020 Will Be Worse Than in Deflation Years (Bloomberg)

US economy still in 'balance sheet recession,' economist Roach says (CNBC)

Fed keeps interest rate unchanged, seeks further economic gains before starting [interest rate] hikes (The Associated Press)

U.S. can stay under debt ceiling through at least late Oct: Treasury chief (Reuters)

Weird: Only 3 new U.S. banks opened since 2010 (CNNMoney)

'Too Big to Fail' Is Still a Problem. Here's How D.C. Wants to End It.: Leaders in the world of financial regulation talk about how to pick up where Dodd-Frank left off—or how to scrap the law and start over entirely. (National Journal)

Rick Perry Channels [Sen. Elizabeth] Warren in 'Too Big to Fail' Speech (American Banker) Rick Perry backs Glass-Steagall solution for Wall Street (The Hill) Rick Perry’s Plan To End ‘Too Big To Fail’ (The Washington Post)

A tale of two Hillarys (The Hill) The 6 big issues where we still don’t know where Hillary Clinton stands (The Washington Post)

California Drought Could Wipe Cities Off Map If Their Water Runs Out (CBSSacramento)

Harvard Professor Now Says Venezuela Won’t Escape Default in ’16 (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.

Tuesday, July 28, 2015

Tuesday roundup (07-28-15)

Demand Troubles Risk Cementing a Decade of Anemic Global Growth (The Wall Street Journal blogs)

Preparing for Global Deflation (LinkedIn)

The Lethal Deferral of Greek Debt Restructuring by Yanis Varoufakis (Project Syndicate)

The Greek Bailout Has Shaken Germany to the Core (Newsweek) Germany, Greece, and the Future of Europe [Project Syndicate via] (The Huffington Post)

Mortgage debt reaches £1 trillion in the UK (Ham&High Property)




13 Per Cent of Canadians Believe They'll Be in Debt Forever (KelownaNow)

Plunge in Consumer Confidence Exposes Risk for U.S. Economy (Bloomberg)

Wall Street is in Hillary Clinton's corner (USAToday) O'Malley hits Clinton's ties to Wall Street (The Hill blogs)

This is How We Reform Wall Street (The Huffington Post)

Is the Democratic Party Abandoning Jefferson and Jackson?: Connecticut, Missouri, and Georgia have dropped the slave-owning presidents from their annual fund-raising dinners, and many more states could follow suit. (The Atlantic)

Italy’s [Oil And Gas Contractor] Saipem Plans 8,800 Job Cuts After Profit Goals Cut (Bloomberg)

Chevron to lay off 1,500 workers amidst oil price slump (Reuters)

Vodafone Plans to Cut 1,300 Spanish Jobs (Agence France Presse)

     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, July 27, 2015

Monday roundup (07-27-15)

Deflation threat returns to stalk investors and policymakers (Reuters)

IMF warns of gloomy eurozone outlook: Reforms and action needed urgently as fears over Greece, high unemployment, structural flaws and a still-shaken bank sector slow growth (The Guardian)

ECB board member says Greek debt needs restructuring (Agence France Presse)

Greek Capital Controls To Remain For Months As Germany Pushes For Bail-In Of Large Greek Depositors (ZeroHedge blog)

Greece Made Preparations to Exit Euro (The New York Times)

The Greece debt bailout negotiations are really about France, not Greece (Credit Writedowns blog)

Chinese regulator vows share support after markets tumble 8.5 percent in a day (Reuters) China losing control as stocks crash despite emergency measures: Margin debt on the Chinese stock market has reached is $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says by Ambrose Evans-Pritchard (The Telegraph)

More energy sector layoffs expected [in the United States] (Fortune)

Puerto Rico Lacks Cash for Aug. Bond Payment, Official Says (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.

Sunday, July 26, 2015

Sunday roundup (07-26-15)

Greece rocked by reports of secret plan to raid banks for drachma return: Opposition demands answers after covert proposals attributed to Yanis Varoufakis and fellow ex-minister highlight deep split in Syriza party (The Guardian) Varoufakis reveals cloak and dagger 'Plan B' for Greece, awaits treason charges: Former Greek finance minister Yanis Varoufakis claims he was authorised by Alexis Tsipras to look into a parallel payment system by Ambrose Evans-Pritchard (The Telegraph) Varoufakis claims had approval to plan parallel banking system (ekathimerini)

Debt conundrum to keep Greek banks in months-long freeze (Reuters)

Greece's headache: how to lift the capital controls? (Agence France Presse)

Justice for sale [in Britain]: Big companies could soon escape prosecution for corporate corruption - by paying their way out (The Independent)

Deregulator of [United States] Banks Set to Defend His Actions (The New York Times blogs)

Thai Airways to cut 1,401 jobs, suspend flights to U.S. (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.

Saturday, July 25, 2015

Saturday roundup (07-25-15)

How the Euro Turned Into a Trap [Editorial] (The New York Times) Moving on From the Euro (Project Syndicate)

Greek bailout talks pushed back by a few days on logistics - official (Reuters) Renewed bailout talks between Greece and creditors hit snags [The Financial Times] (CNBC)

Poland will never join a 'burning' eurozone, says central bank governor: Marek Belka says country remains reluctant to join the euro, as he warns that world is running out of ammunition to fight the next financial crisis (The Telegraph)

Xerox to cut 3,000 jobs worldwide (WROC)

     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, July 24, 2015

Friday roundup (07-24-15)

Deflation Is Winning – Beware!: Expect the ride to get even rougher (Peak Prosperity blog)

Why Europe Is Drowning Beneath a Tidal Wave of Debt (Newsweek)

Greece asks for fresh IMF aid in step closer to bailout: The Greek government had initially planned to go without fresh help from the IMF as it considers the agency too wedded to draconian austerity measures. (Agence France Presse)

Lagarde Push for Greece Debt Relief Challenges Merkel (Bloomberg)

Greek bank boldholders fear Portuguese-style "bad bank" split (Reuters)

Confidential Fed Staff Forecast Reflects Gloomier View of U.S. Economy (The New York Times) Here are the staff forecasts that the Fed accidentally leaked (Marketwatch)

Russian austerity: Putin fires 110,000 officials (CNNMoney)

[Mining companies] Anglo American and Lonmin cut jobs amid commodity slump: London-listed mining groups to shed 12,000 workers as China slowdown and forecast US interest rate rise dents prices (The Guardian)

At least 1,500 layoffs expected at Newport News Shipbuilding over the next two years (WTKR)

Earth’s Most Famous Climate Scientist Issues Bombshell Sea Level Warning (Slate)

     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, July 23, 2015

Thursday roundup (07-23-15)

"Far Worse Than 1986": The Oil Downturn Has No Parallel In Recorded History, Morgan Stanley Says (ZeroHedge blog) Oil Warning: The Crash Could Be the Worst in More Than 45 Years: There's only one thing holding back a price rebound. It's a big thing [= oil supply is not dropping] (Bloomberg) Will the Oil Patch Bust Trigger Recession? by Charles Hugh Smith (of two minds blog)

Greece faces recession warning as bailout talks set to open (Reuters)

The Return of the Ugly German (Project Syndicate)

Beppe Grillo calls for nationalisation of Italian banks and exit from euro: Five Star Movement’s populist leader compares Greek bailout talks to ‘explicit nazism’ and says Italy must use its €2tn debt as leverage against Germany (The Telegraph)

Oil and gas crunch pushes Russia closer to fiscal crisis: 'Russia is going to be in a very difficult fiscal situation by 2017. By the end of next year there won’t be any money left in the oil reserve fund,' says Unicredit by Ambrose Evans-Pritchard (The Telegraph)

Japan Debt Risks Rise to Triple GDP [Within 15 Years] Without Change, IMF Says (Bloomberg) IMF warns Japan must avoid over-reliance on weak yen (Reuters)

[In the United States, Presidential Candidate] Hillary Clinton Rebuffs Liberals’ Push to Break Up Banks (The Wall Street Journal blogs) Clinton dodges on Glass-Steagall (The Hill)

Weatherford to boost job cuts [from 10,000] to 11,000 (FuelFix)

Telecom Italia Plans to Cut 1,700 Jobs, Delays Youth-Hiring Plan (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, 07-23-15)

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.)

"New applications for U.S. unemployment benefits declined by 26,000 to 255,000 in the seven days ended July 18. New claims have been under key 300,000 since late February, the longest run in 15 years." (Marketwatch)

U.S. jobless claims drop to 41-1/2-year low (Reuters) Jobless Claims in U.S. Fall to Lowest Level in Four Decades (Bloomberg)

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, July 22, 2015

Wednesday roundup (07-22-15)

It’ll take more than ‘whatever it takes’ to fix the eurozone (Marketwatch)

ECB raises ceiling on emergency funds for Greece ahead of bailout vote: European Central Bank hikes cap on emergency assistance by £629m as protesters take to the streets against proposed third bailout (The Guardian) [After which,] Greek PM wins parliament backing for bailout reforms package (Reuters) Key dates in Greece's funding talks with the euro zone (Reuters)

How ancient Greek mythology can explain Greece's modern-day debt crisis (The Los Angeles Times)

Is Italy the next Greece?: As the world watches Greece’s besieged leadership limp forward in a effort to push through reform and pay back some of the staggering debt, eyes flicker nervously in Italy’s direction. Megan Williams reports from Rome. (Deutsche Welle)

Capital exodus from China reaches $800bn as crisis deepens: China is reverting to credit stimulus after attempts to engineer a stock market boom failed horribly. The day of reckoning is delayed again by Ambrose Evans-Pritchard (The Telegraph)

Can China beat deflation? (East Asia Forum)

Japan govt says won't meet FY 2020 fiscal discipline targets (Reuters)

[Canada's] Feds can’t avoid $1-billion deficit, budget officer says: Weak economy undercutting the federal government’s fiscal hopes, the parliamentary budget officer says. (The Toronto Star) Federal government facing $1-billion deficit: budget watchdog (The Ottawa Citizen)

Brazil needs extra $157 billion by 2030 to avert crisis, study shows (The Fiscal Times)

Puerto Rico Left Adrift by Washington as Bankruptcy Bills Stall (Bloomberg) Both Bailout and Bankruptcy Unlikely for Puerto Rico (Barron's blogs)

Qualcomm slashes [about 4,500] jobs and costs, says may split itself up (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.

Tuesday, July 21, 2015

Tuesday roundup (07-21-15)

World's economic crisis isn't over, and won't be for a while (The Chicago Tribune)

SPIEGEL Interview with Wolfgang Schäuble: 'There Is No German Dominance': Criticism of Germany's role in the recent negotiations over Greece's future has been fierce. SPIEGEL speaks with Finance Minister Wolfgang Schäuble about the government in Athens, his own feelings about a Grexit and his relationship with Chancellor Merkel. (Spiegel Online)

Why it's time for Germany to leave the eurozone: Influential figures including Ben Bernanke have called on Germany to start pulling its weight to end the eurozone's dysfunction. The only alternative is a German exit from the euro (The Telegraph)

Greek debt crisis exposed competing visions of EU – which will prevail? (The Globe and Mail of Toronto)

Greece's Euro Exit Back on the Agenda Next Year, Economists Say (Bloomberg)

S.Korea finmin says Q2 GDP growth to be "much lower" than Q1 (Reuters)

Commodities crash could turn Australia into a new Greece: The commodities boom made Australia the lucky country but rising debt and a slump in Chinese demand for resources signal tough times ahead Down Under (The Telegraph)

Canada’s Budget Watchdog Says Provincial Debt Unsustainable: Parliamentary Budget Officer says debt accumulating at an unsustainable pace (The Wall Street Journal)

More children [in the United States] live in poverty now than before the Great Recession (MSNBC)

GOP bill would abolish Dodd-Frank 'too big to fail' provision (The Hill)

Citibank ordered to pay customers $700 million (CNNMoney)

Microsoft reports biggest-ever quarterly loss (Marketwatch)

California Proposes Historic $1.5M Fine for Taking Water: The action reflects the rising severity of California's four-year drought. (The Associated Press)

Amid epic drought, California farmers turn to water witches: Rejected by scientists, dowsing is an ancient tradition that’s dying hard in the Central Valley’s parched fields (Yahoo News)

Printer maker Lexmark to cut [500] jobs as software push raises costs (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, July 20, 2015

Monday roundup 07-20-15

Greece reopens banks and pays off some debt in first steps towards normality: Officials confirm that almost all of €7.2bn bridging loan went into repaying money owed to the ECB and IMF (The Guardian)

Greek Banks Start Long and Uncertain Journey to Recovery (The New York Times) New Data Show How Bad Things Were for Greek Banks the Week Capital Controls Were Introduced: Cash in circulation and Target2 liability hit all-time record highs (Bloomberg)

ECB confirms it has been repaid by Greece (CNBC)

Greece has officially paid the IMF (The Business Insider)

Greece Creditors Said to Plan Bailout Disbursement by Aug. 17 (Bloomberg)

Greece Is In A Deflationary Spiral According To Online Prices (Forbes)

How Goldman Sachs Profited From the Greek Debt Crisis: The investment bank made millions by helping to hide the true extent of the debt, and in the process almost doubled it. by Robert Reich (The Nation)

ITALY ‘MUST HAVE A PLAN B’ TO EXIT THE EURO, SAYS ECONOMIST AND FORMER INDUSTRY MINISTER (Breitbart) Paolo Savona: «La Germania è il vero Paese inaffidabile»: L'economista non usa mezzi termini: «L'Italia prepari un piano B per l’uscita dall’Euro. Se dovessimo essere colti impreparati sarebbe veramente un dramma. La Germania si è autoproclamata come “paese d’ordine dell’Europa” e ha usato la Grecia per riaffermare questo ruolo» (Vita)

Portugal’s Debts Are (Also) Unsustainable (ZeroHedge blog)

Ukraine extends creditor talks as threat of default looms [= as early as Friday; The Financial Times via] (CNBC)

[In the United States,] IBM sees sales fall for 13th straight quarter: Shares in the US firm fall 5pc in after-market trading after the results (The Telegraph)

A&P Bankruptcy Filing Indicates Likely Demise: Struggling grocery chain aims to sell most stores, but will close two dozen (The Wall Street Journal) A&P grocery chain files bankruptcy again: The Great Atlantic & Pacific Tea Company Inc. has about 300 stores and 28,500 employees (USAToday) A&P was ‘the Wal-Mart of its day.’ Now it’s filing for bankruptcy. (The Washington Post blogs)

A new Glass-Steagall for banks: One giant step for Congress, one small step for us all: A planned revival of the Depression-era law would be a long overdue stride toward reining Wall Street back in. (Fortune) [versus] Real Competition to End ‘Too Big Too Fail’: A present for Dodd-Frank, which turns 5 today. (The American Spectator blogs)

Qualcomm preparing to lay off several thousand employees [= 4,000]: tech website (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.

Sunday, July 19, 2015

Sunday roundup (07-19-15)

Merkel Calls for Swift Start of Greek Bailout Talks (The New York Times)

Germany, Not Greece, Should Exit the Euro (BloombergView)

Greek banks to reopen for first time in three weeks: Withdrawal limit relaxed to €420 a week and deposit boxes can be emptied, but capital controls remain (The Guardian) Greek banks ready to open Monday as Merkel urges swift bailout talks (Reuters)

Krugman's money is on a Grexit (CNNMoney)

France’s staggering debt levels are far more worrying than ours [in the UK]: Francois Hollande’s French administration has struggled to cope with a sluggish economy and uncertainty in the eurozone (The Telegraph)

Greece debt crisis: François Hollande calls for a 'eurozone government' to further integrate member states - but what will this mean for Britain? (The Independent)

Barclays plans to cut more than 30,000 jobs - The Times (Reuters)

Two cheers for the Dodd-Frank Act [in the United States] – but Wall Street culture needs radical change: It’s five years since the landmark financial regulation was passed in response to the 2008 crisis and while it’s a step in the right direction, there’s a long way to go (The Guardian)

Birds Are Dying As Drought Ravages Avian Highways: Migrating birds are weakened or sickened as they wing their way along the Pacific flyway in search of fresh water. (National Geographic)

Shrinking Colorado River is a growing concern for Yuma farmers — and millions of water users (The Los Angeles Times)

Officials say drought conditions worst in Washington [state] recorded history (The Yakima Herald) How Is Washington's Drought Affecting Local Farms?: Growing Food in Dry, Hot Conditions Requires Adaptability and a Lot of Drip Tape (The Stranger) State says drought is so bad every county will qualify for relief funds (goskagit)

Northwest Water Supplies Dropping Amid Drought Conditions (Oregon Public Broadcasting)

     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, July 18, 2015

Saturday roundup (07-18-15)

[In Greece,] Alexis Tsipras reshuffles cabinet to get rid of bailout dissidents: Greek prime minister’s shakeup marks decisive split from Syriza MPs who voted against EU and IMF’s draconian deal terms (The Guardian)

Greek debt crisis: Banks to reopen Monday but capital controls remain; Tsipras reshuffles cabinet (Agence France Presse) Now a deal has been done, what lies ahead for the Greek economy?: Greece’s banks will reopen on Monday and the country will step back from the brink – but can the nation get back to normal or will it be permanently scarred? (The Observer)

Greece debt crisis news: Yanis Varoufakis says 'disastrous' bailout reforms 'will fail' as Tsipras reshuffles cabinet (The Independent)

     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, July 17, 2015

Friday roundup (07-17-15)

DANGER: Twin Crack-Ups Set To Implode The World Economy And Financial System (King World News)

The euro is a disaster even for the countries that do everything right (The Washington Post blogs)

Euro zone bailout fund opens 3rd bailout talks with Greece (Reuters)

Greece's economy could shrink by another 4% this year (CNNMoney)

Greece Will Exit The Eurozone? (Barron's blogs) What’s Next For Greece and the European Union (World Policy blog)

Germany Risks Its Reputation With Idea of Greece Exiting Eurozone (The New York Times) Greek debt crisis: Germany's Wolfgang Schäuble says Greece may be better off leaving euro (International Business Times)

Europe's troubles go way beyond Greece: Next up, Italy: The drama in Greece portends even worse trouble for the euro up ahead. (Fortune) Grexit averted but euro zone debt problems still a headache (Reuters)

Spain at risk of missing 2015 deficit goal - watchdog (Reuters)

Spain's public debt rises to 98.3 percent in May (Reuters)

Fed's Fischer says U.S. inflation still too low [The Wall Street Journal via] (Marketwatch)

Sanders backs reviving Glass-Steagall (The Hill) Sanders Backs 21st Century Glass-Steagall Act (The United States Senate)

Elizabeth Warren lays down a marker for Hillary Clinton: The Massachusetts senator isn’t running, but she’s making clear she intends to have her say in 2016. (Politico) Warren urges 2016 candidates to fight 'revolving door' (The Associated Press)

The California drought is even worse than you think (CNBC)

Puerto Rico's options: Default, restructure, bailout or bankruptcy? (The Hill blogs)

Finland's Wartsila to cut 600 jobs after weak results (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, July 16, 2015

Thursday roundup (07-16-15)

Oil Heads for Longest Weekly Losing Streak Since January on Glut (Bloomberg)

Eurozone approves three-year bailout for Greece (Marketwatch) Europe moves to restore funding to Greece after bailout vote (Reuters) Greek debt crisis eases as banks prepare to reopen Monday (The Washington Post)

Germany’s Tone Grows Sharper in Greek Debt Crisis (The New York Times) German media lament deal as 'disaster': The deal on Greek reforms has been met with horror in certain quarters, as German journalists worry that their government is undermining 70 years of post-war diplomacy. (The Local)  Greece bailout revives image of the ‘cruel German’ (The Washington Post) Radical left protests in Germany over bailout deal ‘coup’ against Greeks: Divisions emerge within Angela Merkel’s CDU party over whether to back deal as demonstrations take place in 14 cities over austerity package imposed on Greece (The Guardian)

Schaeuble Shrugs Off Greek Vote Saying Euro Exit Is Best (Bloomberg) Greece should seize Germany's botched offer of a velvet Grexit: The Versailles terms imposed on Germany in 1919 were vindictive and narrow-minded, but not beyond reach. Greece is being told to do the impossible by Ambrose Evans-Pritchard (The Telegraph) El-Erian: Greek deal only prolongs the inevitable (CNBC) Eurogroup head says wants Grexit debate to end (Reuters)

The Euro-Summit ‘Agreement’ on Greece – annotated by Yanis Varoufakis (Yanis Varoufakis blog)

China's Debt-to-GDP Ratio Just Climbed to a Record High: China's debt is still growing faster than its economy (Bloomberg) China's debt is now twice the size of its gross domestic product (The Business Insider)

China's real estate, credit and investment bubble risks global recession [= "China is the number one threat to the global economy"] (The Sydney Morning Herald)

Billionaire Paul Singer: China Crash Is 'Way Bigger Than Subprime' (Bloomberg)

[In the United States,] Auto Loan Rejection Rate Falls To Lowest Level On Record (ZeroHedge blog)

Reinstating Glass-Steagall Is a Really, Really Bad Idea: Having Glass-Steagall in place would not have prevented the last financial crisis. But reinstating it might make the next one even worse. [Not the view of this blog nor the view of a number of Morningstar readers. See numerous scathing comments at the end of the page.] (Morningstar)

Tata Steel to slash 720 UK jobs in Yorkshire as high electricty costs bite: Steel maker Tata blames high production costs and competition from cheap Chinese imports for redundancies in South Yorkshire (The Telegraph)

General Mills to Close 2 Plants, Cut More Than 600 Jobs: Planned closures to occur over next 3 years (The Wall Street Journal)

New Zealand dairy giant Fonterra to cut 523 jobs (Agence France Presse)

     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, 07-16-15)

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 in the period running from July 5 to July 11 declined by 15,000 to a seasonally adjusted 281,000, the Labor Department said Thursday. New claims have been under the key 300,000 level since late February, the longest run in 15 years." (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, July 15, 2015

Wednesday roundup (07-15-15)

Europe’s dirty little secret is Greece will never pay back its debt (The Washington Post blogs)

EMU brutality in Greece has destroyed the trust of Europe's Left: 'The Left let itself become the enforcer of reactionary policies and mass unemployment because of the euro.' Greece has broken the spell by Ambrose Evans-Pritchard (The Telegraph)

Greece votes 'Yes' on bailout bill (CNNMoney) Greece approves contentious austerity measures, smoothing way for bailout (The Washington Post) Greek parliament approves bailout measures as Syriza fragments (Reuters)

ECB Weighs Emergency Funding After Tsipras Wins Greece Bailout Vote (Bloomberg)

Greeks Divided Over Austerity Bill: Clashes break out as Greek lawmakers debate contentious austerity bill. (The Associated Press) Greek MPs pass austerity bill as Athens police clash with protesters: Alexis Tsipras drives through tax increases and pensions shakeup amid angry splits in his Syriza party (The Guardian)

Greeks insist that they cannot afford another dose of austerity (The Washington Post)

Why Germany refuses to write off Greece's debts (The Associated Press)

IMF Warns Greece Deal Uncertainty May Undermine German Recovery (Bloomberg)

BOJ trims growth forecast on soft exports, Kuroda upbeat on China (Reuters)

Canadian recession fears grow as interest rate drops to another record low: Economy meets standard definition of recession after shrinking in two straight quarters, with Canadian dollar hitting lowest point since 2009 (The Guardian)

White House Cuts Growth Forecast for 2015, 2016 (Dow Jones Newswires)

Hillary Clinton's Glass-Steagall by Robert Reich (The Huffington Post) Progressives push Clinton on her banking bill stance (The Hill) Hillary a Wall Street Hero; No Glass Steagall Regulations: What You See is What You Get (Ring of Fire)

     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, July 14, 2015

Tuesday roundup (07-14-15)

Europe fails to rid itself of deflation threat (Reuters)

I.M.F. Demands Greece Debt Relief as Condition for Bailout (The New York Times) IMF stuns Europe with call for massive Greek debt relief: 'There would have to be a very dramatic extension with grace periods of 30 years on the entire stock of European debt,' the fund says by Ambrose Evans-Pritchard (The Telegraph) Massive debt relief for Greece would give economy chance to grow: IMF (Reuters) Greece needs debt relief far beyond EU plans - Secret IMF report (Reuters)

Greece needs debt relief to survive, says Mark Carney: Mark Carney, the Governor of the Bank of England, says Greece's debt pile must be "smoothed" in order to get the country back on a sustainable path, and that implementing a third bail-out will require a "Herculean effort" (The Telegraph) Bank Of England Governor Mark Carney Warns Greek Bailout is 'Not Sustainable' (International Business Times)

Was this humiliation of Greeks really necessary?: It will take years for my adopted country to get over this crisis. Its people have faced the prospect of overnight impoverishment and wept at the indignity by Helena Smith, the Guardian's correspondent in Greece, Turkey and Cyprus (The Guardian)

Greece Should Just Quit [Editorial] (BloombergView) [The Financial Times's Wolfgang] Munchau: "The Eurozone As We Know It Is Destroyed" (ZeroHedge blog)

Greek leader struggles to hold government together after bailout deal (The Washington Post) Greeks Prepare to Fight Bailout Deal In and Outside Parliament (Time)

Greek Bailout Rests on Asset Sale Plan That Already Failed (Bloomberg)

Golden Dawn will be strengthened by more austerity, Yanis Varoufakis warns: The former finance minister told the ABC the bailout agreement is a ‘new form of postmodern occupation’ and predicts Greece will fall into the grip of the far right (The Guardian)

Greek debt-deal timeline: What has to happen next (Marketwatch)

Italy's sovereign debt hits record high: Italy's public debt has hit a new record, at a time where the eurozone is struggling through the Greek debt crisis. Italy is the currency union's third largest economy and the most indebted country after Greece. (Deutsche Welle)

U.S. companies expected to report worst sales fall in nearly six years (Reuters)

The U.S. is facing a $1 trillion pension shortfall (CNNMoney)

[Sen. Elizabeth] Warren calls for return of Glass-Steagall (The Hill)

Hillary Clinton's chronic caution on the big banks: Her economic agenda is missing the one sure-fire way to rein in their runaway power by Nomi Prins [= resurrect Glass-Steagall] (The New York Daily News) What Hillary Clinton Didn't Say in Her Economic Policy Speech (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.

Monday, July 13, 2015

Monday roundup (07-13-15)

Deal on Greek Debt Crisis Is Reached, but Long Road Remains (The New York Times) Greece debt crisis: While Europe has avoided Grexit, the Greek economy remains in intensive care: The country faces a highly uncertain economic and political outlook (The Independent) After "Deal", Here's What's Next For Greece (ZeroHedge blog)

Holy austerity, Batman, Greece will be fleeced! (Firedoglake blog) Greece is being treated like a hostile occupied state: A new deal for Athens is the worst of all worlds and solves nothing by Ambrose Evans-Pritchard (The Telegraph) Greece Capitulates to Creditors’ Demands to Cling to Euro (Bloomberg) Blame Berlin: Why the Greek debt deal is doomed to fail [Editorial] (The Globe and Mail of Toronto)

Greece May Have To Sell Islands And Ruins Under Its Bailout Deal (Time)

Greeks see 'humiliation' in harsh terms of eurozone bailout (Agence France Presse) Greek deal poisons Europe as backlash mounts against 'neo-colonial servitude': 'It is now perfectly clear to a lot of people that the only way out of neo-colonial servitude is to break free of monetary union,' said one Syriza rebel by Ambrose Evans-Pritchard (The Telegraph) Greek crisis: surrender fiscal sovereignty in return for bailout, Merkel tells Tsipras: German and French leaders press Greek leader for guarantees over austerity measures in what an EU official describes as ‘extensive mental waterboarding’ (The Guardian) Greek debt crisis: 'Who will trust Germany after this?' asks Paul Krugman (The Independent) #ThisIsACoup Reflects European Outrage Over Greek Bailout Terms: As Athens came to an agreement with its European creditors over the terms of a bailout package Monday morning, many Europeans — especially Greeks and Germans — were saying the deal amounted to a coup d’état. (Buzzfeed) [versus] No, the Greek agreement is not a coup and if you think it is, you're an idiot: Likening today's German government to the Nazi regime is offensively stupid (The Telegraph) Yanis Varoufakis opens up about his five month battle to save Greece: In his first interview since resigning, Greece's former Finance Minister says the Eurogroup is “completely and utterly” controlled by Germany, Greece was “set up” and last week’s referendum was wasted. (The New Statesman)

Greece to miss 450 million IMF loan payment on Monday - sources (Reuters)

Greece's debt odyssey not over yet (USAToday)

Greek banks closed until Thursday (CNNMoney) Even a bailout deal can't revive Greece's shattered banking system (The Business Insider)

Deal on Greek Debt Crisis Exposes Europe’s Deepening Fissures (The New York Times) Greece is a pawn in fight between France, Germany (Marketwatch) Eurozone crisis: which countries are for or against Grexit: With an emergency voting procedure potentially coming into play as eurozone splits widen, how do member states line up on the idea of expelling Greece? (The Guardian)

China May Tip World Into Recession, Morgan Stanley’s Sharma Says (Bloomberg)

[US Presidential Candidate Hillary] Clinton will not propose reinstating bank break-up law - campaign adviser Blinder (Reuters)

[Still,] Hillary Clinton Lays Out Unexpectedly Tough Agenda On Wall Street (ThinkProgress) Hillary Clinton's Big Economic Speech Abridged to 500 Words (Mother Jones)

     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, July 12, 2015

Sunday roundup (07-12-15)

The Euro – A Fatal Conceit (The Market Monetarist)

Alexis Tsipras pledged to end austerity. And now he is asked to sign up for more: Faced with lending conditions so severe that one wonders if Germany intends it to leave the euro of its own accord, Greece and its PM are facing a terrible choice (The Guardian) Greece Given 72 Hours to Win Trust by Passing Bailout Laws (Bloomberg) Euro zone leaders: Greece must do more to earn rescue (Reuters)

The countries happy to see Greece leave the eurozone: Which countries are desperate to keep Greece in the eurozone and which would be happy if it left? We take you through the country's friends and foes (The Telegraph)

Greek debt crisis: Goldman Sachs could be sued for helping hide debts when it joined euro (The Independent)

France is the sick man of Europe, says former French prime minister François Fillon: “Sick” France needs urgent reform, says former centre-Right prime minister, calling for major reforms to stop the “pauperisation” of the country (The Telegraph)

Risky Loans Are 'Driving' US Auto Sales: 3 Charts (ZeroHedge 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.

Saturday, July 11, 2015

Saturday roundup (07-11-15)

Beyond Greece, the world is filled with debt crises: Drama in Athens reflects a bigger truth: precarious countries across the globe owe trillions of dollars to lenders and investors who must be repaid (The Observer)

Euro zone demands more from Greece, delays decision on aid (Reuters) High-stakes talks in Brussels break up without decision on Greece’s future (The Washington Post) Greece bailout talks: Still no deal (CNNMoney)

"Difficult" Eurogroup talks on Greece resume 0900 GMT [on Sunday] - Dijsselbloem (Reuters)

24 hours to save the euro: Germany prepares for a 'temporary' Greek exit as euro project on the brink of collapse: Berlin readies humanitarian aid for Greece proposing a five-year expulsion from the euro, after Athens is accused of destroying the trust of its partners (The Telegraph) Germany floats Greek euro 'time-out' without more reforms (Reuters)

France: 'We can't take risk of Greece euro exit' (The Local) Greece needs debt relief, France's Macron tells German newspaper (Reuters)

With cash fast running out, Greek bank failures loom [The Financial Times via] (CNBC)

[In the United States,] Premier Bank, Denver, CO, Becomes Sixth Bank Failure of 2015 [as posted here yesterday] (Problem Bank List)

     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.