Monday, August 31, 2015

Monday roundup (8-31-15)

World Risks Third Food-Price Surge in a Decade on Record El Nino (Bloomberg)

Eurozone inflation stable at low rate of 0.2 percent (The Associated Press)

Goldman Sachs says this chart looks like this only when there's about to be a recession (The Business Insider) Goldman Warns This Extreme Indicator "Is Rare Outside Of A Recession" (ZeroHedge blog)

Say Goodbye to Normal (Kunstler)

Brazil sees 2016 budget deficit, puts pressure on Congress (Reuters)

Hanergy Thin Film to Cut Workforce by More Than a Third [= by more than 2,000] in Restructuring: Chinese company in a standoff with Hong Kong regulators wants to shift focus to solar products for consumers and industry (The Wall Street 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, August 30, 2015

Sunday roundup (8-30-15)

Greek Election Poses New Economic Risks (The New York 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.

Saturday, August 29, 2015

Saturday roundup (8-29-15)

IMF's Lagarde says restructuring should suffice for Greek debt (Reuters)

Yanis Varoufakis Unplugged: On Tsipras, the Press and More [The Conversation via] (Newsweek)

Here’s Why The Bernie Sanders Iowa Surge Should Terrify The Koch Brothers (PoliticsUSA)

August 2015: Unofficial Problem Bank list declines to 282 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, August 28, 2015

Friday roundup (8-28-15)

Citigroup braces for world recession, calls for Corbynomics QE in China: Citigroup's Willem Buiter says only a blitz of helicopter money from the central bank can stop China's economy crumbling now by Ambrose Evans-Pritchard (The Telegraph) China Will Respond Too Late to Avoid Recession, Citigroup Says (Bloomberg)

How the IMF's Greek misadventure is changing the fund (Reuters)

Core inflation [in the United States] eases in July and moves further away from Fed’s target (Marketwatch) Fed’s Favorite Inflation Gauge Runs Below Target for 39 Straight Months: The PCE price index rose 0.1% last month, Commerce Department reports (The Wall Street Journal)

Consumer Sentiment in U.S. Declines to a Three-Month Low (Bloomberg)

Joseph Stiglitz explains why the Fed shouldn't raise interest rates (The Los Angeles Times) A dangerously misleading idea threatens to derail the American economy: The case for keeping interest rates as low as possible for as long as possible. (Vox)

Black Monday reveals the trouble with ETFs (USAToday)

Illinois lottery winners have to wait for payout due to budget impasse (The Chicago Tribune)

Brazil economy sinks into worse-than-expected recession (Reuters) Brazil falls deep into recession (CNNMoney)

Brazil budget deficit widens in July, jeopardizes fiscal goal (Reuters)

More Philly job cuts this fall [for a total of more than 800]: Mellon, Atkore: Update (The Philadelphia Inquirer)

Southern Baptist Convention cutting up to 800 jobs (Christianity Today)

[Germany's] Bilfinger to cut 750 jobs at power plant unit (Reuters)

[Finland's] VR planning to cut nearly 600 jobs: State rail company VR says it’s planning to eliminate 570 jobs in an effort to cut costs. The payroll cuts will mean leaner services on some routes, but the company also promised to permanently reduce ticket prices. (YLE)

     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, August 27, 2015

Thursday roundup (8-27-15)

Reflation threat to bonds as money supply catches fire in Europe: Central banks are taking out loose-money insurance against a crisis in China, but they risk being caught badly off guard by surging money growth as stimulus bites by Ambrose Evans-Pritchard (The Telegraph) The Coming Phase Transition & the Dow by Martin Armstrong (Armstrong Economics)

ECB faces inflation headache even as lending bounces (Reuters)

Ukraine dodges default with $3.6 billion debt deal (CNNMoney) Ukraine and Top Creditors Agree to Restructure $18 Billion in Foreign Debt (The New York Times) Ukraine crisis: Creditors to 'write off' 20% of debt (The BBC)

Japan inflation stalls and spending slides, keeps BOJ under pressure (Reuters)

Mauldin's Outside The Box on the Corruption of American Politics (Cliff Küle’s Notes blog)

Dudley Puts The Kibosh On September (Tim Duy's Fed Watch blog)

Brazil central govt posts $2 bln primary budget deficit in July (Reuters)

Latin America is on the brink of a major debt crisis (The Business Insider)

Deflationary Collapse Ahead? (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.

Is it a recovery yet? (Weekly report, 08-27-15)

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 fell by 6,000 to 271,000 in the seven days ended August 22, the first decline after four straight weekly gains." (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, August 26, 2015

Wednesday roundup (8-26-15)

Oil Industry Needs to Find Half a Trillion Dollars to Survive (Bloomberg)

CBO: US could reach $18.1 trillion debt limit in mid-November (The Hill)

Bank Regulators Considering Concessions on Key Capital Rule (Bloomberg)

Panasonic to stop making batteries in Beijing, cut 1,300 jobs - Nikkei (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, August 25, 2015

Tuesday roundup (8-25-15)

Bank of England 'may put off interest rate hike' after market turmoil in China (The Evening Standard)

Russia Faces Reality With Prediction of Deeper Economic Slump (Bloomberg)

China Again Cuts Interest Rates as Concerns Mount Over Economy (The New York Times) China cuts rates to stem crisis, but doubts grow on foreign reserve buffer: 'There are reasons to question the robustness of China’s reserves,' said Citigroup. Contrary to general belief, China has one of the lowest reserve ratios among emerging markets by Ambrose Evans-Pritchard (The Telegraph)

China's economic woes may spread beyond its borders (The Hill blogs)

Chinese alarm over? No, this is merely a pause in an ongoing debt crisis: Six years after the global financial crisis, the world economy still looks as unstable, unbalanced, uncoordinated and ultimately unsustainable as ever (The Telegraph)

Great Recession Job Losses Severe, Enduring [in the United States]: Of those who lost full-time jobs between 2007 and 2009, only about 50 percent were employed in January 2010 and only about 75 percent of those were re-employed in full-time jobs. (The National Bureau of Economic Research)

How Google Could Rig the 2016 Election: Google has the ability to drive millions of votes to a candidate with no one the wiser. (Politico)

How Elizabeth Warren Is Pulling The Strings In 2016 (ThinkProgress)

California officials eyeing stock market plunge, hope it won't last (The Los Angeles Times)

Dutch Nutritional Supplement Maker DSM to Cut 900-1,100 Jobs (The Associated 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.

Monday, August 24, 2015

Monday roundup (8-24-15)

Global Trade In Freefall: Container Freight Rates From Asia To Europe Crash 60% In Three Weeks (ZeroHedge blog)

How Greece outflanked Germany and won generous debt relief: Tsipras’s prize in negotiations was debt rescheduling like West Germany’s in 1953 (Marketwatch)

Anti-bailout leftist gets Greek coalition mandate (Reuters) Pro-Grexit group Popular Unity to take mandate to create Greek coalition as New Democracy misses deadline (CityAM)

US crude closes under $40 a barrel for first time in 6 ½ years on fears of new global slump (The Associated Press)

U.S. inflation probably lower than reported, Fed study says (Reuters)

Why the Bear of 2015 Is Different from the Bear of 2008 by Charles Hugh Smith (of two minds blog)

A&P supermarkets Thanksgiving Day layoff list grows to 8,500 jobs at 93 stores (NJ)

Daimler to cut another 1,500 jobs at Brazil truck plant (Reuters)

Origin to cut about 800 jobs (SkyNews)

Norwegian IT firm Evry to slash up to 550 jobs (ComputerWeekly)

BlueScope to cut at least 500 steel jobs (NewsAu)

     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, August 23, 2015

Sunday roundup (8-23-15)

From Russia to Iran, the consequences of the global oil bust (The Washington Post)

US Fed and Bank of England trapped in monetary maze in struggle for higher rates (South China Morning Post)

Canadian recession will go beyond 1st half of 2015: 'Let's not fool ourselves into thinking this is a mild recession,' writes Louis-Philippe Rochon (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.

Saturday, August 22, 2015

Saturday roundup (8-22-15)

Investors Race to Escape Risk in Once-Booming Emerging-Market Bonds (The New York Times blogs)

Eurozone condemned to permanent crisis without reforms: Single currency will not become a "United States of Europe" as countries deal with the scars of the current crisis, former Brussels chief Olli Rehn warns (The Telegraph)

Spending cuts [made by UK government are going] 'too fast and too far', finance ministers [of Scotland, Wales and Northern Ireland] say (The BBC)

U.S. banks moved billions in trades beyond CFTC's reach (Reuters)

The Federal Reserve is Not Your Friend: Fed policies disproportionately favor wealth (Reason)

Weighing Presidential Run, Joe Biden Meets with Elizabeth Warren (New York magazine) Biden, Considering White House Bid, Meets With Elizabeth Warren (The New York Times)

Donald Trump and the Long Tradition of American Populism (Newsweek)

     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, August 21, 2015

Friday roundup (8-21-15)

[In France,] National Front expels founder Jean-Marie Le Pen [The Financial Times via] (CNBC) French National Front founder Le Pen to fight party expulsion (France24)

Producer prices in Asia are sinking, and fast (CNBC)

Sharp China factory slowdown in August raises global growth fears (Reuters) China's factory activity just hit a 77-month low (CNNMoney)

Record capital flight from China as industrial slump drags on: China's state media decries "unimaginably fierce resistance" to economic reforms, a sign that president Xi Jinping is becoming furious with incompetent party officials by Ambrose Evans-Pritchard (The Telegraph)

Obama declares state of emergency at site of out-of-control Washington fires: Australia and New Zealand sending emergency workers to join thousands of firefighters in Washington, Montana, Oregon, Idaho and California (The Guardian) Wildfires force new evacuation orders in Washington state (Reuters)

A&P notifies 3,781 N.J. workers of layoffs effective Thanksgiving Day (NJ)

     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, August 20, 2015

Thursday roundup (8-20-15)

A Funny Thing Happened on the Way to $80 Oil by A. Gary Shilling (BloombergView)

Greece Makes Payment to European Central Bank, Avoiding Default (The New York Times)

Tsipras Calls Early Greek Elections to Strengthen Grip on Power (Bloomberg) Tsipras calls snap election over austerity reforms (The Times of London)

Asia is deflating (The Business Insider)

U.S. factories still haven’t recovered from the recession (The Washington Post blogs)

This is how the Federal Reserve is preparing to raise interest rates (The Washington Post blogs)

Germany's Schaeffler to cut 500 jobs at industrial unit (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, 08-20-15)

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 4,000 to a seasonally adjusted 277,000 in the seven days stretching from Aug. 9 to Aug. 15, marking the highest level since early July." (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, August 19, 2015

Wednesday roundup (8-19-15)

Currency wars and the threat of deflation: Downward pressure on prices signals dangers for the world economy (Aljazeera)

Euro Area Agrees on 86 Billion-Euro Bailout Deal for Greece (Bloomberg)

The 8 Trillion Black Swan: Is China's Shadow Banking System About To Collapse? (ZeroHedge blog)

Get ready for a rate hike: Fed looks close to liftoff (CNNMoney) Fed minutes keep September interest rate hike in play (The Los Angeles Times)

Deflation Says Fed Should Delay Rate Hikes: Plunging oil, global markets argue to hold off on liftoff. Even if zero rates don’t help, a hike could do harm. (Barron's)

Wal-Mart: One more reason the Fed should not hike rates (CNBC)

Greenspan warns about bond-market bubble (Marketwatch)

Bank of NY Mellon sued by U.S. regulator over $2 bln in soured mortgages (Reuters)

[Meanwhile] BNY Mellon to pay $14.8 million to settle intern bribery probe (Reuters)

Dodd-Frank is killing America, one community bank at a time: Reversing the course is equally unsettling (Housing Wire blogs) Is Dodd-Frank Really Killing Community Banks? (American Banker)

Denmark's Lundbeck to cut 1,000 jobs in restructuring (Reuters)

Mondelez To Invest In Mexican Factory, Cut 600 U.S. Jobs (Vending Times)

NetApp posts loss, to cut 500 jobs (Marketwatch)

     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, August 18, 2015

Tuesday roundup (8-18-15)

Doomsday clock for global market crash strikes one minute to midnight as central banks lose control: China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations (The Telegraph)

Why oil prices could sink to $15 a barrel (CNNMoney) Oil Goes Down, Bankruptcies Go Up - These 5 Frackers Could Be Next To Fall (Forbes)

Europe struggles to respond as migrants numbers rise threefold (Reuters)

Greece to trouble euro zone for decades: Finnish foreign minister (Reuters)

Greek Deposits Become Eligible For Bail-In On January 1, 2016 (ZeroHedge blog)

Europe, Listen to the I.M.F. and Restructure the Greek Debt [Editorial] (The New York Times)

St. Louis Fed official: No evidence QE boosted [the United States] economy (CNBC)

What Is Killing America's Bees and What Does It Mean for Us?: Pollinators are vanishing, and a silent spring could become a horrifying reality. So why won't the EPA do more? (Rolling Stone)

There aren't enough firefighters to fight all the Western wildfires (The Los Angeles Times) 1.1 million acres are burning in drought-stricken Western U.S. right now (Mashable) Raging Western Wildfires Are Burning Through Firefighting Budgets (NBCNews)

Idaho 'Firenado' Shoots 100 Feet Into Air: It is just the latest example of the frightening extremes marking this historic western wildfire season. So far, more than seven million acres has been torched this season. (NBC Nightly News with Lester Holt)



Ongoing drought to cost California $2.74 billion: researchers (Reuters)

Jackson leaders work to counter $15M budget deficit: Budget hearings run through Wednesday (WAPT)

     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, August 17, 2015

Monday roundup (8-17-15)

World shipping slump deepens as China retreats: Ports across the world suffer worst hit since the Lehman crisis as emerging markets wilt, but trade may not matter so much to global GDP any longer by Ambrose Evans-Pritchard (The Telegraph)

Europe’s Curious Debt Edge Over the U.S. (The Wall Street Journal blogs) U.S. Could Face More Debt Refinancing Risk Than Eurozone: UBS (ValueWalk)

Economists Say Greece Should Get Debt Relief: Tsipras plea gains some traction. (Bloomberg)

Yanis Varoufakis just trashed Greece's bailout agreement with a line-by-line takedown [update] (The Business Insider)

Dealing with migrants is a bigger challenge for Europe than Greek debt crisis, warns Angela Merkel, as she says attacks on refugees are 'unworthy' of Germany (The Daily Mail) Migrant Crisis May Eclipse Greek Debt Problem: German Chancellor Angela Merkel (International Business Times)

Japan's economy shrinks again as 'Abenomics' stimulus called into question: World's third largest economy stumbles back into contraction as consumer spending and exports suffer (The Telegraph)

Japan economy shrinks in second quarter in setback for 'Abenomics' (Reuters) Japan’s Economy Contracts as Consumption, Investment Decline (Bloomberg) Another terrible quarter puts Japan's recovery in question (CNNMoney)

Canada’s Recovery Like Its Recession Will Be Mild, Survey Says (Bloomberg)

Goldman Weighs In On America's Pension Ponzi: Contributions Must Rise $100 Billion Per Year (ZeroHedge blog)

New York state factory activity tumbles to lowest since 2009: NY Fed (Reuters)

US Steel Idling Alabama Mill; About 1,100 Jobs Affected (The Associated Press)

As Bass Pro Shops pursues rapid Florida expansion, it sheds [at least 500] jobs elsewhere (The Tampa Bay 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.

Sunday, August 16, 2015

Sunday roundup (8-16-15)

A Global Recession May Be Brewing in China: Beijing’s desperate attempts to hit its arbitrary 7% growth target are having world-wide repercussions. (The Wall Street Journal) Marc Faber: I See a Recession Coming [in the United States] (FoxBusiness)

The Crisis Is Spreading: China, Australia, Brazil, Canada, Sweden... (ZeroHedge blog)

In Providing Debt Relief to Greece, the Devil Is in the Details (The New York Times)

[In the Unites States,] High Beef Prices Fueling Rustling Revival in Plains States (The Associated 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.

Saturday, August 15, 2015

Saturday roundup (8-15-15)

World without Water: The Dangerous Misuse of Our Most Valuable Resource: Amid climate change, drought and mismanagement, our world's most valuable resource is becoming scarce. Much of the crisis is man-made -- and even water-rich countries like Germany are to blame. (Spiegel Online)

Greece needs more debt relief after third bailout deal in five years, says IMF chief: Christine Lagarde insists burden is unsustainable and warns fund will not participate without ‘concrete agreement’ on debt relief (The Guardian) IMF's Christine Lagarde tells Europe again: Cut Greece's debt (CNNMoney)

Italy's massive debt obstacle preventing economy from growing faster? (Xinhua)

40 migrants die off Italy as EU faces 'worst crisis since WWII' (Agence France Presse)

'No-flation’ lowers the prospect of Bank of England interest rate rise: Weak oil prices and the strength of the pound are expected to have kept inflation flat in the year to July (The Telegraph)

     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, August 14, 2015

Friday roundup (8-14-15)

Deleveraging as a Biblical Plague (The Automatic Earth blog

RANKED: The world's national debts, from safest to most risky (The Business Insider)

Eurozone GDP unexpectedly slowed in second quarter (Marketwatch) Euro zone economy slows as France stalls and China risks loom (Reuters) Euro-Area Growth Cools as Germany, France Fall Short (Bloomberg) The euro-zone recovery is losing momentum (The Economist blogs)

Europe’s Low Yields Are Here to Stay as Inflation Outlook Turns (Bloomberg)

Weak Eurozone Growth Could Raise Pressure on ECB to Boost Bond Buys: Weak numbers could undermine the ECB’s confidence in the solidity of the economic recovery (The Wall Street Journal)

Europe shouldn’t worry about migrants. It should worry about creeping fascism: The greatest threat to our “way of life” is not migration. It is that we will swallow the lie that some human lives matter less than others. (The New Statesman)

Eurozone Finance Ministers Approve Greek Bailout (The New York Times) Greece to receive billions of new loans after bailout approved (USAToday)

Germans [= the consumers] borrow more as Merkel urges Europe to spend carefully (Reuters)

Italian Economy Grew Less Than Forecast in Second Quarter (Bloomberg)

Diesel falls amid signs of return to deflation [in the UK] (The Times of London) Economists predict return to deflation: The recent fall in oil prices suggests that the UK is likely to experience another bout of negative inflation before the end of the year pushing a base rate rise out to next year, Capital Economics has predicted. (Mortgage Introducer)

China denies currency war as global steel industry cries foul: Industries across the world are bracing for a deflationary shock as China devalues, but Beijing adamant there is no secret plan to drive down the yuan by Ambrose Evans-Pritchard (The Telegraph)

You think China has problems? Look at Japan (Marketwatch) Japan economy seen shrinking in Q2 in setback for "Abenomics" (Reuters) Everyone's watching the wrong central bank in the wake of China's shock devaluation (The Business Insider)

U.S. economy on track to grow 0.7 percent in third quarter: Atlanta Fed (Reuters)

The Fed Is on Thinner Ice Than It Realizes, and It May Be Setting Us Up for Recession: The soft landing already happened, and raising rates could make things worse (Bloomberg)

Louisiana budget deficit could reach as high as $700M next year, lawmaker says (Greater Baton Rouge Business Report)

     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, August 13, 2015

Thursday roundup (8-13-15)

Eurozone Economic Recovery Likely Stalled in Q2 (The Associated Press) ECB Prepared to Tweak QE If Needed as Recovery Disappoints (Bloomberg)

Greece creditors raise 'serious concerns' about spiralling debt levels: Analysis by trio of European creditors forecasts Greek debt to peak at 201% of GDP in 2016 and that debt relief may be necessary (The Guardian) Greece's creditors publish stark debt analysis as Syriza faces bail-out rebellion: Lenders voice 'serious concerns' about Greece's huge debt mountain, which is projected to only get back to a sustainable level in 2030 (The Telegraph)

Italy needs upward dynamism since its high-level debt still problem for economy (Xinhua)

Struggling Lenovo to cut 3,200 jobs, streamline handset business (PCWorld)

HTC announces [more than 2,300] layoffs as resurgence bid continues: The company says that it will cut 15 percent of its staff as it refocuses its business on "premium smartphones, virtual reality, and connected lifestyle products." (Cnet)

Motorola Mobility slashes 500 jobs in Chicago (Crain's Chicago Business)

     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, 08-13-15)

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 5,000 to 274,000 in the seven days ended August 8, the Labor Department said Thursday, in a report suggesting continued improvement in the labor market." (Marketwatch)

One measure of jobless claims is at lowest level 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, August 12, 2015

Wednesday roundup (8-12-15)

The Troubled Oil Business: Hitting peak oil will come faster than any of us think. But don’t blame dwindling supply — it’s all about disappearing demand (Medium) GUNDLACH: If oil goes to $40 a barrel, something is 'very, very wrong with the world' (The Business Insider)

Euro zone industrial production lower-than-expected in June (Reuters) Eurozone industrial production falls in June (Marketwatch)

Greek bailout terms to give eurozone vast powers over policymaking: A 29-page document setting out conditions of €85bn deal shows Greece faces more austerity and health, welfare, pensions and tax overhaul (The Guardian)

Greece debt crisis: Varoufakis says bailout 'won't work' (The BBC)

Devaluation Hints at China’s Rising Distress Over Economy (The New York Times) China's currency devaluation could spark 'tidal wave of deflation': Western central banks advised to resist raising interest rates and told to prepare to ward off deflationary slump in face of cheaper Chinese exports (The Guardian) ALBERT EDWARDS WARNS: Prepare for overwhelming 'waves of deflation' to suck us into recession (The Business Insider) [versus] China cannot risk the global chaos of currency devaluation: China has nothing to gain from triggering a deflation shock. Its economy is recovering as stimulus builds, creating 1.2m jobs a month by Ambrose Evans-Pritchard (The Telegraph)

China central bank under pressure to weaken yuan further (Reuters)

China is putting the Fed in a tough spot (CNNMoney)

Why China may be on the brink of recession (Marketwatch)

Kraft Heinz Slashing 2,500 Jobs in US, Canada After Merger (The Associated 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, August 11, 2015

Tuesday roundup (8-11-15)

Greece says it has agreed on terms for third bailout with creditors: Unclear whether institutions agree deal is complete [The Wall Street Journal via] (Marketwatch) Greece bailout agreed 'in principle': European Commission (CNBC) Greece reaches new debt deal but critics brand targets 'utterly unachievable': Broad terms of a third bail-out deal for Greece agreed after marathon talks, but economists say fiscal targets are "fantasy" and will not be met (The Telegraph) Greece lands £60bn debt bailout but faces strict austerity measures and privatisation (The Mirror) Tentative Greek Debt Accord Might Do Little to Revive Economy (The New York Times) The Guardian view on the Greek bailout: a deal that addresses nothing: Late-night haggling in Athens has produced the appearance of a resolution to the debt crisis. But the new three-year bailout leaves democracy in deficit and a Greek economy on the floor [Editorial] (The Guardian)

Italy Plans to Sell as Much as 40% of State Postal System ["as it seeks to cut public debt"] (Bloomberg)

China devaluation sparks fear of currency war, angers U.S. lawmakers (Reuters) Treasuries Are a Winner as China Exports Deflation Says Bill Gross (Bloomberg) China Devalues Yuan — Why? (Armstrong Economics)

Productivity in U.S. Barely Rebounds Following Earlier Slump (Bloomberg) Productivity dry spell looks worse in latest report (Marketwatch) This is 'more damaging...than the Great Recession' (CNBC)

Economists Think Brazil Will Get Downgraded to Junk in the Next Few Years: A rating cut will be one more setback for the already struggling economy [Aug. 7] (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, August 10, 2015

Monday roundup (8-10-15)

Russia crisis deepens as economy suffers worst recession in six years: Latest GDP figures show rate of economic contraction doubled to 4.6pc as oil price collapse threaten Putin's finances (The Telegraph) Russian GDP Plunges 4.6% (Bloomberg)

Russian Authorities Step in to Avert Ruble Slide: Kremlin and the central bank dismiss concerns about the battered currency (The Wall Street Journal)

China moves to devalue the yuan: Yuan’s fixing is lowered 1.9% Tuesday [The Wall Street Journal via] (Marketwatch)

Japan Consumer Confidence Falls to Lowest in Six Months in July (Bloomberg)

U.S. inflation temporarily 'very low,' says Fed's Fischer (Reuters)

Listen up, candidates: Social Security is broken [Aug. 4] (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.

Sunday, August 9, 2015

Sunday roundup (8-9-15)

Stephen Schork: The Commodity Crash Is "A Canary In The Coal Mine For The Global Economy" (ZeroHedge blog) The Deflationary Implosion On The Road To Full-Blown Global Collapse (King World News)

China faces deflation as producer prices slide to 6-year low (Press Trust of India) China under mounting pressure to ease policy as economy stumbles (Reuters)

The Complex Story of American Debt: Liabilities in Family Balance Sheets [July 29] (The Pew Charitable Trusts)

     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, August 8, 2015

Saturday roundup (08-08-15)

"The Top's In" David Stockman Warns Of "Epochal Deflation" (ZeroHedge blog) David Stockman's new warning: Is there a stock collapse coming? Former Reagan OMB Director David Stockman issues a warning, with CNBC's Jackie DeAngelis and the "Futures Now" traders. (CNBC)



Varoufakis warns Spain could 'become Greece' [Aug. 2] (Agence France Presse)

What Trump didn’t say [in Thurday's US debate among Republican presidential candidates] about his four big business bankruptcies (The Washington Post)

CenturyLink plans 1,000-job layoff companywide (KATC)

     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, August 7, 2015

Friday roundup (8-7-15)

Bill Gross: the world is lurching dangerously close to deflation: "Bond King" Bill Gross raises alarm over weakness in emerging market currencies and commodity prices (The Telegraph) Emerging Market Mayhem: Gross Warns Of "Debacle" As Currencies, Bonds Collapse (ZeroHedge blog)

Commodity prices now falling in all currencies… (The Big Picture blog)

Families [in the UK] have too much debt, Bank of England's Mark Carney warns as he prepares for an interest rate rise (The Daily Mail)

Bank of Japan holds fire on stimulus despite tepid inflation (Agence France Presse)

Five charts that show why Australia is facing financial MELTDOWN: UNEMPLOYMENT in Australia is rising and economic growth is slowing with experts fearing the country is about to go through a significant downturn. (The Express)

[The United States] Economy adds 215,000 jobs in July, but not enough to dip unemployment rate (The Washington Post blogs) A solid month of job creation, but wages stagnate (CBSMoneywatch)

Merrill: Employment Report and a September Fed Rate Hike (Calculated Risk blog) Bill Gross On Rate Hike: 50 Basis Points Would Scare, 25 Is The Majority Consensus (Benzinga)

Here's the Next Crisis "Nobody Saw Coming" [= state and local government crisis] by Charles Hugh Smith (of two minds 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, August 6, 2015

Thursday roundup (8-6-15)

Greece's tax revenues collapse as debt crisis continues: As talks continue over proposed €86bn third bailout, Greek treasury says tax revenues fell 8.5% in a year, and public spending fell 12.3% (The Guardian)

Indebted Portugal is still the problem child of the eurozone: Asphyxiating debt levels, falling job creation and bad loans still plague the economy, a year after it exited its bail-out programme, warns the IMF (The Telegraph)

Bank of England leaves key interest rate at record low, indicates an increase still far off (The Associated Press)

Why Are People Worried About Bond Market Liquidity? (Pragmatic Capitalism)

Puerto Rico is no longer in control of its own destiny [Aug. 3] (Fusion)

     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, 08-06-15)

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 edged up 3,000 to 270,000 in week ended Aug. 1, the Labor Department said Thursday." (Marketwatch)

[Nonetheless,] Jobless Claims in U.S. Hover Near Lowest 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, August 5, 2015

Wednesday roundup (8-5-15)

Eurozone Retail Sales Fall Sharply in June: Data indicate the currency area’s economic recovery remains too weak to bring down high unemployment (The Wall Street Journal)

Italy's Renzi says severe fiscal austerity could harm euro zone - Nikkei (Reuters)

Italy's industrial output falls more than expected (Marketwatch)

U.S. investment funds target Italian shipping debt deals - sources (Reuters)

Saudi Arabia may go broke before the US oil industry buckles: It is too late for OPEC to stop the shale revolution. The cartel faces the prospect of surging US output whenever oil prices rise by Ambrose Evans-Pritchard (The Telegraph)

Bad debts in Thailand spread from retail to small companies (Reuters)

Most Americans say their children will be worse off: Parents don’t think their kids will be as wealthy as they are (Marketwatch)

Five economic questions that should be asked in the first GOP presidential debate [which takes place tomorrow night] (Crain's Cleveland Business)

Why Donald Trump is winning (The Washington Post blogs) How Durable Is Donald Trump’s Surge? (The New Yorker)

Organic farmers face growing pains as demand outpaces supply (USAToday)

Puerto Rico Has Another Debt Worry on Horizon [The New York Times via] (CNBC)

1,100 extra jobs are set to be cut at Lancashire County Council [in the UK] (The Lancashire Evening Post)

Patriot to cut 1,000 jobs in Kanawha County (The Register-Herald of Beckley, West Virginia)

     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, August 4, 2015

Tuesday roundup (8-4-15)

Global Inflation Remains Stubbornly Low: OECD data indicates central banks’ stimulus measures are yet to minimize risk of a slide into deflation (The Wall Street Journal)

Day of reckoning postponed as global recovery builds: Monetary expansion in Europe, America and China all point to stronger growth this year, signalling another leg to the global expansion by Ambrose Evans-Pritchard (The Telegraph) [Note, however, that if the items from Martin Armstrong at the end of today's post should prove to be true, this thesis may be overtaken by events.]

This map shows Europe's colossal debt division (The Business Insider)

Greece 'faces severe slump': Leading economists warn country is in a 'severe depression' and there is a 'very strong possibility' it will leave the eurozone (The Daily Mail) Greece needs €100bn debt relief as permanent depression looms: National Institute of Economic and Social Research says Greek debt write-off must be much larger than IMF demands, as think-tank warns VAT hikes and budget targets are asphyxiating economy (The Telegraph) Greece needs wide debt relief to avoid permanent depression, thinktank warns: NIESR claims that a haircut of 55% on Greek debt is needed to give the country a chance of reducing its debt to 120% of GDP (The Guardian)

Italy says [that it intends] to seek budget leeway from EU (Reuters)

Further conflict, debt dispute pose high risk to Ukraine recovery - IMF (Reuters)

Canada is on the verge of a recession (CNNMoney)

Go-go economy becomes so-so economy [in the United States]: U.S. faces dimmer future absent big fixes: Long-run prosperity under more threat than ever (Marketwatch)

Rewriting the History of the Financial Crises and the Repeal of Glass-Steagall (Jesse's Café Américain blog)

The ECM Date October 1 = Fiscal Year-End [ECM stands for Economic Confidence Model devised by Martin Armstrong] (Armstrong Economics) Economic Confidence Model [image] (Armstrong Economics)

The Risk of Real Estate – Forget Derivative & Fiat ["The amount of leverage within the entire system based upon real estate is astronomical."] (Armstrong Economics)

     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, August 3, 2015

Monday roundup (8-3-15)

S&P revises EU outlook to 'negative' from 'stable'; rating at AA+ (CNBC)

The Eurozone's Death by a Thousand Bailouts (Newsweek)

Why the Eurozone was always doomed to fail: The monetary union was flawed from the start—and now Europe has “its foot on the accelerator and is running out of road,” says Heather Conley, of the Center for Strategic and International Studies. (Fortune)

Greece Is Still Doomed Without Debt Relief [Editorial] (Bloomberg)

How the IMF and US were party to Greece's tragedy (CNBC)

In conversation with El Pais (Claudi Pérez), the complete (long) transcript by Yanis Varoufakis, former Greek finance minister (Yanis Varoufakis blog) Varoufakis vindicated while Lagarde emerges as a loser: The inside story of Greek finance minister’s prescient conference call (Marketwatch)

China's slowdown threatens the euro zone core more than the fragile South (Reuters)

Puerto Rico in default on massive debt (USAToday) Puerto Rico triggers historic default as austerity spiral deepens: America's home-grown "Greece" is trapped in a vicious circle as a shrinking economy and an exodus of workers pushes the debt ratio through the roof by Ambrose Evans-Pritchard (The Telegraph) America’s Un-Greek Tragedies in Puerto Rico and Appalachia by Paul Krugman (The New York Times) Puerto Rico's crisis ... in 2 minutes (CNNMoney) Puerto Rico Default – Welcome to Big Bang (Armstrong Economics)

U.S. factory activity dips; consumer spending cools (Reuters)

Big U.S. coal miner Alpha Natural files for bankruptcy (Reuters)

First Quantum to Cut About 1,480 Zambia Jobs on Power Shortages (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.