Saturday, October 31, 2015

Saturday roundup (10-31-15)

Greek banking system needs €14.4bn after ECB finds capital black hole: European Central Bank finds shortfall in country's four biggest banks to be plugged before the end of the year (The Telegraph)

Irish central bank governor warns government over growth, spending (Reuters)

[The United States] Congress OKs bipartisan budget deal, but road ahead not easy (The Associated Press)

US consumer spending records weakest gain in 8 months (The Associated Press) Weak U.S. data clouds December rate hike possibility (Reuters)

October 2015: Unofficial Problem Bank list declines to 264 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, October 30, 2015

Friday roundup (10-30-15)

Central Banks of World Unite! Pact Seen Needed to Spur Inflation (Bloomberg)

Euro zone inflation zero in October, pressure on for more ECB easing (Reuters)

Portugal risks becoming 'ungovernable' as conservative government set to collapse after just 11 days: Centre-right minority government on course to be shortest ever after president warns of "uncontrolled" instability (The Telegraph)

[In the UK,] Global economic downturn fears prompt high street gloom: Separate surveys find October sales undershot expectations, while shoppers are more uncertain on whether it is a good time for major purchases (The Guardian)

BoJ cuts growth, inflation view as Japan economy stalls (Agence France Presse)

Canada Just Lost The Most Jobs Since The Great Recession, Payroll Report Says (The Huffington Post)

Largest U.S. banks face $120 billion shortfall under new rule (Reuters) Fed’s New Rule Would Ease Strain From Dying Banks (The New York Times blogs)

“Too Big to Fail”: Megabanks Bigger than Ever, Nonprofits Growing Slower (Nonprofit Quarterly)

Louisiana’s budget deficit from last year pegged at $117M (The Associated Press)

Whittier faces $2.3 million budget deficit for next year (The Whittier Daily News of Whittier, California)

Husky cuts 1,400 jobs, posts $4.1-billion loss (The Globe and Mail of Toronto)

Chevron will slash as many 7,000 jobs following a plunge in profit (The San Jose Mercury News)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Thursday, October 29, 2015

Thursday roundup (10-29-15)

Another recession is coming - the only question is how bad: Governments must end today's destructive dependency on central banks, which will lead to financial bust (The Telegraph)

Households [in the UK] warned over interest rate rises as debt levels soar: BORROWING among British households has seen the biggest annual jump since 2006, leading to fears that families could suffer when interest rates start to rise. (The Express)

Bombardier Gets $1 Billion From Quebec to Support Jet Program (The New York Times) Bombardier Bailout Shows Quebec `Always' on Jetmaker's Side (Bloomberg)

US economy slowed to 1.5 pct. growth rate in July-Sept. quarter as businesses cut stockpiles (The Associated Press)

Resurrecting Glass-Steagall by Simon Johnson (Project Syndicate)

At Republican Debate, Fantasy Sports Got More Attention Than Wall Street (The New York Times)

GOP candidates plot debate revolt against RNC (CNNMoney)

Venezuela is running out of cash and selling its gold (CNNMoney)

Deutsche Bank To Cut 35,000 Jobs, A Quarter Of Its Workforce: The announcement came Thursday as the bank reported a net loss of 6 billion euros. (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.

Is it a recovery yet? (Weekly report, 10-29-15)

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 Oct. 18 to Oct. 24 edged up by 1,000 to a seasonally adjusted 260,000, the government said Thursday." (Marketwatch)

Weekly Initial Unemployment Claims increased to 260,000, 4-Week Average Lowest since 1973 (Calculated Risk blog)

Jobless Claims Still Low (Bespoke)

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, October 28, 2015

Wednesday roundup (10-28-15)

Sub-zero interest rates have floor nearby, albeit a shaky one (Reuters)

[Meanwhile,] Banks are seriously discussing negative interest rates for normal people's savings (The Business Insider)

Italy sells six-month debt at negative yields for first time ever (Reuters)

Deutsche Bank Plans to Eliminate Dividend for Two Years in Overhaul (Bloomberg)

Sweden's Riksbank Expands QE Program as ECB Stimulus Weighs (Bloomberg)

Britain is heading for another 2008 crash: here’s why: The government wants us to believe our economic growth is sustainable, and that budgetary surplus will fix all our problems. But these are dangerous myths (The Guardian)

Bank of Japan Faces Pressure to Act on Economy: Facing a global slowdown, Japan’s central bank is taking a fresh look at further stimulus (The Wall Street Journal)

Fed puts December rate hike firmly on the agenda (Reuters) [versus] Opinion: How Mario Draghi will stop Janet Yellen from raising rates for years: As long as the ECB is printing money, no central bank can lift interest rates (Marketwatch)

One Issue Mike Huckabee and Bernie Sanders Can Agree on: Break Up the Big Banks (The Street)

Why Donald Trump Could Win the Republican Nomination: The far right isn't what's buoying the populist plutocrat. (Bloomberg)

In U.S., Support for Tea Party Drops to New Low (Gallup)

DPS [Detroit, Michigan, Public Schools] could be insolvent by spring, state treasurer warns (The Detroit News)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Tuesday, October 27, 2015

Tuesday roundup (10-27-15)

Greece’s Bailout Deal with Europe Is Starting to Show Cracks: Greece is falling short on reforms it promised in exchange for a third, $95 billion bailout. EU officials are telling Athens to move more quickly, or else money it desperately needs could be delayed. (Foreign Policy)

Russia's Reserve Fund could run empty in 2016 (CNBC)

IMF: Japan needs sales tax hike for fiscal sustainability [Reuters via] (CNBC)

US consumer confidence slips in October (The Associated Press)

Regional Fed Manufacturing Surveys Weak Again in October (Calculated Risk blog)

Cummins plans to slash 2,000 jobs due to weak demand for its engines; cuts outlook (The Associated Press)

Baxter to cut 1,400 jobs worldwide to boost profits (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, October 26, 2015

Monday roundup (10-26-15)

ECB call for euro zone reforms may fall on deaf ears (Reuters)

Draghi in Countdown to More Stimulus Awaits Clues on Economy (Bloomberg)

Why Portugal's constitutional crisis threatens all of Europe's democracies: A fresh political maelstrom is brewing in southern Europe. It may not be a repeat of Greece or Italy, but it represents another nadir in the eurozone's shaky democracy (The Telegraph) Portugal faces political crisis as leftists vow to topple new government: Pedro Passos Coelho, the newly nominated PAF party prime minister, looks set to see his government programme voted down by opponents (The Guardian)

First Bank of England hike now not expected until second quarter 2016: Reuters poll (Reuters)

[Meanwhile in the United States, the] Fed [is also] set to remain on pause as GDP data expected to show slowdown (Marketwatch)

These Are the Fed's Three Weapons If the Economy Falters: Economists say the policy options are weak or dangerous [Oct. 21] (Bloomberg)

Sales of New U.S. Homes Slump to Lowest Level Since November (Bloomberg)

U.S. Companies Warn of Slowing Economy: Big firms to post first decline in both earnings and sales since the recession (The Wall Street Journal)

'Good' Jobs Aren't Coming Back: In the last several years some American companies have moved their operations back to the states, but the resulting factory work isn't providing the prosperity and security that such work once did. (The Atlantic)

Save Social Security from the GOP by Mike Huckabee (CNBC)

Brazil's recession to be more severe, analysts say [EFE via] (FoxNews Latino)

     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, October 25, 2015

Sunday roundup (10-25-15)

Poland lurches to right with election of Law and Justice party: Exit poll points to Beata Szydło becoming the country’s next prime minister as ruling party concedes defeat (The Guardian)

Bank of England Governor Mark Carney says British households should prepare for interest rates to rise even though hike is not guaranteed (This is Money)

Japan’s Struggling Economy Finds ‘Abenomics’ Is Not an Easy Fix (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, October 24, 2015

Saturday roundup (10-24-15)

Why Hurricane Patricia Intensified, Then Weakened, So Quickly (ABCNews)

GOP House moves on ObamaCare repeals, debt ceiling plans despite White House veto threat (FoxNews)

     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, October 23, 2015

Friday roundup (10-23-15)

17 European Countries in Deflation, Is the U.S. Too?: Dartmouth David Blanchflower discusses global deflation, currency wars and the economy. He speaks on "Bloomberg Markets." [VIDEO] (Bloomberg) The Global New Normal of Low Inflation: Marvin Barth, head of European FX strategy at Barclays, discusses the global lack of inflation, the impact on central banks, and how much China is responsible for the spread of low inflation. He speaks on "Bloomberg Surveillance." [VIDEO; Oct. 16] (Bloomberg)

Schäuble’s Gathering Storm by Yanis Varoufakis (Project Syndicate)

Government Debt in France and Italy Swells to Euro-Era Highs (Bloomberg)

Eurozone crosses Rubicon as Portugal's anti-euro Left banned from power: Constitutional crisis looms after anti-austerity Left is denied parliamentary prerogative to form a majority government by Ambrose Evans-Pritchard (The Telegraph) Portugal's center-right govt returns to power, but bigger opposition parties say it is doomed (The Associated Press)

Iceland, Where Bankers Actually Go To Jail For Committing White-Collar Crimes (ThinkProgress) Iceland: Where [26] Bankers Go to Jail for [a combined total of] 74 Years: There’s one country that’s actually making the wizards behind the global financial collapse pay for their crimes. (The Daily Beast) Iceland Tosses 26 Banking Executives in Prison: Gutless DOJ remains shameless and silent (Ring of Fire)

Cheap oil is crushing these Middle Eastern countries: Saudi Arabia, Qatar and Iran count on oil exports. But oil in the current $40 to $50 range is already below the break-even point for many Middle Eastern nations. (CNNMoney) IMF PREDICTS SAUDI ARABIA BANKRUPT BY 2020 (Breitbart)

Hurricane Patricia Makes Landfall in Mexico as 'Extremely Dangerous' Category 5 Storm (ABCNews) 'Strongest Ever' Hurricane Makes Landfall on Mexico's Pacific Coast: Locals boarded up windows and people raced to board buses out of town, as Hurricane Patricia took aim at Manzanillo and resort destination Puerto Vallarta. (NBC Nightly News with Lester Holt)



Economists are starting to warn about the risk of a new U.S. recession (The Washington Post blogs)

John Boehner Races Time on Debt Limit: If speaker wants to leave his likely successor, Paul Ryan, without a standoff, he must act early in week (The Wall Street Journal) House Leaders Unlikely to Push Bill Linking Debt-Ceiling to Conservative Issues (Dow Jones Newswires) Republican leaders struggle to find votes to up debt limit (The Associated Press) With RSC Proposal Scrapped, Republicans Have No Plan On Raising The Debt Ceiling (Town Hall)

Dems Beg, Plead To Avoid Debt Catastrophe In Days: "In March they [= the Republicans] voted for a budget that they're now sabotaging in October." (The Huffington Post) Pelosi: Debt-limit hike 'non-negotiable' (The Hill) Obama would veto any debt-ceiling bill with spending cuts (The Hill)

The risk that America will default on its debts is now higher than ever (The Washington Post blogs)

It Could Have Been So Much Worse: A new analysis proves the stimulus, TARP and other measures prevented a deeper catastrophe. (U. S. News & World Report)

Even corporate America wants campaign finance reform to stop crony capitalism: A new study backed by big business argues that lobbying is harming the American economy – and proposes regulation to address the problem (The Guardian) Crony Capitalism: Unhealthy Relations Between Business and Government (Committee for Economic Development)

Moody's downgrades rating on $26.8 billion in Illinois bonds (The Associated Press)

Illinois Budget Mess Spurs Biggest Pension Fund Withdrawal Ever (Bloomberg)

Pennsylvania's budget gridlock hits schools, seniors (Reuters)

State Street to cut 600 jobs as markets, rates bite (The Boston Globe)

GM to cut 500 jobs, eliminate shift at small-car plant near Detroit (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, October 22, 2015

Thursday roundup (10-22-15)

$1.5 Quadrillion Derivatives Bomb And The Great Financial Disaster (King World News)

As Deflation Looms in Eurozone, ECB Keeps Interest Rates As Is (TheStreet)

Euro zone consumer confidence falls in October (Reuters)

If Caterpillar's Data Is Right, This Is A Global Industrial Depression (ZeroHedge blog) Caterpillar misses on earnings, cuts outlook, stock falls (The Business Insider) Caterpillar Weighed Down by Slowing Global Economic Growth (The Associated Press)

Credit Suisse to slash UK staff by about 2,000: Investment bank looks to downsize by moving posts abroad or cutting jobs, as several banks weigh up potential results of vote on EU membership (The Guardian)

Patriot Coal Layoffs [Of More Than 1,900 Workers] Start Taking Effect Thursday, Continue For Next Two Weeks (WCHS)

3M Plans 1,500 Job Cuts as Dollar Pinches Overseas Sales (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, 10-22-15)

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.)

"The four-week average of claims, a less volatile measure than the weekly figure, decreased to 263,250 from 265,250 in the prior week, the Labor Department said Thursday. This is the lowest level for this average since December 1973." (Marketwatch)

U.S. jobless claims up slightly, four-week average lowest since 1973 (Reuters)

U.S. Jobless Claims Hover Near 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, October 21, 2015

Wednesday roundup (10-21-15)

Spain to Probe Accounts as Hidden Catalan Spending Revealed (Bloomberg) Catalan leader points to Madrid witch hunt after 10 held on corruption allegations: Artur Mas claims his pro-independence stance makes him and other party colleagues Spanish targets (The Telegraph)

Defiant Portugal shatters the eurozone's political complacency: Brussels faces a second anti-austerity revolt as the Portuguese Left tears up the script and demands the right to govern by Ambrose Evans-Pritchard (The Telegraph)

Bank of Canada maintains key rate, downgrades economic outlook (Business News Network)

[US Vice President] Joe Biden says no to 2016 presidential race (USAToday) Biden Bows to Hillary & Bankers by Martin Armstrong (Armstrong Economics)

The Supreme Court May Weigh In on a Student Debt Battle: One deeply indebted student borrower may become an unlikely hero to the 41 million Americans with education debt. (Bloomberg)

The Problem Isn't Student Loans--It's Higher Education by Charles Hugh Smith (of two minds blog)

[Michigan] Governor Snyder: It'll Take $715 Million to Bail Out Detroit Schools (WTVB)

Weatherford plans to cut 3,000 more jobs by the end of 2015 (FuelFix)

Biogen to cut 880 jobs, including 400 in Mass., in restructuring (The Boston Globe)

Ministry Health Care to cut 500 jobs (The Marshfield News-Herald of Marshfield, Wisconsin)

     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, October 20, 2015

Tuesday roundup (10-20-15)

Just How Bad Was the 2009 Global Recession? Really, Really Bad (Bloomberg)

PAUL SINGER: Developed countries are hopelessly and utterly insolvent (The Business Insider)

Deflation = Debt + Demographics + Disruption... But Mostly Debt (ZeroHedge blog)

Fragmented post-recession Europe harder to govern (Reuters)

Anti-immigration SVP wins Swiss election in big swing to right (The BBC)

Spain Pushes Through Budget With EU Forecasting Deficit Breaches (Bloomberg)

Why there's no easy way out of Spain's insurmountable economic mess: Despite being hailed as an unmitigated EU success story, the eurozone's fourth largest economy still faces daunting economic challenges (The Telegraph)

Japan September export growth slows sharply, adds to recession fears (Reuters)

Canada's Trudeau topples PM Harper in shock election win (Reuters) Canada has voted for the politics of anti-austerity: Unlike the NDP, Justin Trudeau’s Liberals refused to move to the centre economically, and triumphed. He can now restore Canada to what it once was (The Guardian)

2 economists imagined a financial crisis [in the United States] without stimulus or bailouts. It’s … ugly. (Vox)

Lawmakers Wrangle Over Plans to Avert, Manage or Embrace Default (The New York Times) Will Boehner be able to avert debt ceiling showdown? (CBSNews) John Boehner's Last Job [Editorial] (BloombergView)

The Fed, the White House and Congress are setting up the next financial bubble (The Washington Times)

Democrats are in denial. Their party is actually in deep trouble. (Vox) [versus] As Republican Party Falls Apart, President Obama’s Approval Rating Hits a Two-Year High (Forward Progressives)

Areva says to cut 2,700 jobs in France by 2017 (Reuters)

SocGen wants to cut 2,000 jobs at French retail bank - union (Reuters)

Tata Steel cuts 1,200 jobs as crisis intensifies: Problems in industry worsen as Tata Steel management confirm job losses at plants in Scunthorpe and Scotland [as announced earlier by unions and posted here] (The Telegraph) UK steel sector imploding, Tata Steel blames cheap Chinese imports (Reuters) U.K. Steel Industry's Demise Speeds Up as China Floods Market (Bloomberg) British steel industry could be gone within a year unless David Cameron acts: The closure of Teesside's Redcar plant, Caparo going into administration and job losses at Tata steel have created a 15,000 jobs meltdown (The Mirror) Britain's steel industry braced for disaster after being let down by one government after another (This is Money)

     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, October 19, 2015

Monday roundup (10-19-15)

The World Hits Its Credit Limit, And The Debt Market Is Starting To Realize That (ZeroHedge blog)

ECB slightly raises capital demands for euro zone large banks (Reuters)

An Engineering Theory of the Volkswagen Scandal (The New Yorker)

Japan third-quarter growth seen slowing sharply as Asian demand slumps (Reuters)

Moody's, The Economist warn of high Canadian debt, housing prices: High consumer debt because of overpriced housing a bad combination with a slowing economy (The Canadian Broadcasting Corporation)

[United States Treasury Secretary] Jack Lew: I worry about 'terrible' debt limit accident (CNBC)

A Profit Recession Without an Economic Recession (The Big Picture blog)

The two trillion dollar towers of student and auto debt: As Americans are unable to afford homes, many go deep into debt to finance their education and cars. (mybudget360)

How Healthcare Is Dooming the U.S. Economy (Three Charts) by Charles Hugh Smith (of two minds blog)

Fitch sinks Illinois' credit rating to BBB-plus (Reuters)

Through third quarter, Halliburton cut one-fifth of jobs worldwide [= 4,000] (FuelFix) Halliburton sales drop 36 percent as oil downturn reduces fracking (The Kansas City Star)

1,700 steel jobs at risk as Caparo Industries files for administration: Crisis in UK steel industry claims another victim as Lord Paul's Caparo Industries collapses (The Telegraph)

Daiichi Sankyo to restructure U.S. Commercial unit; 1,200 jobs could be lost in N.J., U.S. (NJBIZ)

     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, October 18, 2015

Sunday roundup (10-18-15)

ECB meeting to be closely watched for stimulus talk: Analysts do not rule out European Central Bank boosting QE this week, although December is still seen as the most the likely month (The Guardian)

Air France to cut less than a third of the 2,900 jobs planned (France24) Air France to cut some jobs in 2016, rest of plan negotiable: CEO (Reuters)

Deutsche Bank to restructure business, part ways with key execs (CNBC)

Clinton Made Student Loans Non-Dischar[ge]able (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.

Saturday, October 17, 2015

Saturday roundup (10-17-15)

Greek Lawmakers Clear Way for $2.3 Billion in Bailout Funds (The New York Times)

A Liquidity Crisis Hit The Banking System In September (Investment Research Dynamics)

     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, October 16, 2015

Friday roundup (10-16-15)

Euro zone inflation confirmed at -0.1 percent in September (Reuters) Here comes more QE in Europe as ECB combats deflation: Citi sees more QE at ECB’s December meeting (Marketwatch)

Draghi in the spotlight amid growth worries (Reuters)

Bank of Italy urges government to grasp opportunity to cut debt (Reuters)

There is Only One Solution to the Debt Limit [in the United States] (US Department of the Treasury)

What’s really causing the student debt crisis, according to Sheila Bair (Marketwatch)

Mike Huckabee Wants To Get Wall Street’s Filthy Cash Out Of Washington’s Sweaty G-String (DealBreaker blog)

Tata Steel to cut 1,200 jobs at Scunthorpe - UK union source (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, October 15, 2015

Thursday roundup (10-15-15)

'The world is still in love with debt' and there's $50 trillion more of it since the financial crisis (The Business Insider)

Global economic slowdown in real danger of persisting (Reuters)

Citi's Buiter: World faces recession next year [Oct. 13] (CNBC)

These 5 Facts Explain the Worrying Rise of Europe’s Far-Right (Time)

Post-election tension, drama in Portugal may hit Spain amid legacy of austerity, corruption (The Associated Press)

China economic growth seen slowing despite policy easing (Reuters)

Made in China 'Lowflation' Keeps Lid on Prices Across the World (Bloomberg)

Japan's factory output slumps, hints at recession (Marketwatch)

[United States] Treasury warns Congress: Debt limit deadline now Nov. 3 as fiscal outlook sags slightly (The Associated Press) Lew to Claman: A 'Terrible Time' for Debt Limit Fight (FoxBusiness) Boehner likely to move on debt limit hike before departure; CBO says early Nov. action needed [Oct. 14] (The Associated Press)

What a Debt Ceiling Disaster Could Mean to You (The Fiscal Times)

Obama’s options in debt limit breach may all be unconstitutional (USAToday)

Inflation falls again on cheaper oil, imports, CPI shows (Marketwatch) The Latest Price Data Aren't Doing Fed's Inflation Outlook Any Favors: Costs of health care and financial services are looking weak (Bloomberg)

Philly Fed, Empire State both show grim conditions in manufacturing: Strong dollar weighing on factory sector (Marketwatch) American manufacturing is in a recession (The Business Insider)

U.S. economy seen growing 0.9 percent in third-quarter: Atlanta Fed (Reuters)

This astonishing chart shows how moderate Republicans are an endangered species (The Washington Post blogs)

     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, 10-15-15)

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 Oct. 4 to Oct. 10 declined by 7,000 to a seasonally adjusted 255,000, the government said Thursday." (Marketwatch)

Initial jobless claims fall to the lowest since December 1973 (The Business Insider)

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, October 14, 2015

Wednesday roundup (10-14-15)

HSBC: The 'toxic mix' of low growth and high debt has spread to the developing world (The Business Insider)

Portugal’s efforts to find a new government turn sour (The Associated Press) Left turn in Lisbon: Portugal’s defeated Socialists seek government deal with far left. (Politico) Europe’s Left Continues Its Rise to Power—This Time in Portugal: In recent elections, left parties garnered more than 50 percent of the vote and austerity took a major hit. (The Nation)

'Call a halt to austerity [in Britain]': Danny Blanchflower says the UK economy is slowing, so we need to take off the brakes (The Evening Standard)

Weak U.S. retail sales, inflation data cloud rate hike outlook (Reuters)

Strong dollar is restraining economy, Fed’s Beige Book finds: Report on economy puts prospect of rate hike more in doubt (Marketwatch)

Hillary Clinton's Take on Banks Won't Hold Up: The Democratic frontrunner seems to be counting on America's ignorance about the 2008 crash by Matt Taibi (Rolling Stone)

What the heck is the controversial Glass-Steagall Act? (CNNMoney) What Is Glass-Steagall? The 82-Year-Old Banking Law That Stirred the Debate (The New York Times)

Most Americans have less than $1,000 in savings (Marketwatch)

RABOBANK COULD CUT 10,000 JOBS BY 2020 (NLTimes)

     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, October 13, 2015

Tuesday roundup (10-13-15)

The world economic order is collapsing and this time there seems no way out: The refugee crisis is paralleled by the savage fallout from a global financial system running out of control [Oct. 10] (The Guardian)

Next financial crash is coming – and before we've fixed flaws from last one: IMF global stability report makes for a sobering read, saying sustainable recovery has failed to materialised and cheap money has led to bubbles and debt [Oct. 7] (The Guardian) IMF Warns That We Have a New Crisis Coming by Martin Armstrong (Armstrong Economics blog)

"We've Never Seen Anything Like This" - Dumbfounded Central Bankers Brace For "Rolling Series Of Crises" (ZeroHedge blog)

Germany's Schaeuble warns against addiction to low interest rates (Reuters)

Switzerland Said to Impose 5% Leverage Ratio on Big Banks (Bloomberg)

Interest rates [in the UK] could still go lower, says Bank of England's newest committee member: Gertjan Vlieghe says monetary policy is not 'all played out' as UK faces risks from global slowdown (The Telegraph)

UK economy falls into deflation in September (CNBC) Britain falls back into deflation as tumbling fuel prices take effect: Consumer prices slip to their lowest level since April at -0.1pc on the back of falling energy costs and sluggish growth in clothes prices (The Telegraph)

The US is closer to deflation than you think (CNBC)

Most Fed Regional Boards Favored Discount-Rate Rise in September (Bloomberg)

Central bankers meeting at IMF say Fed shouldn’t delay on rate hikes: Fed’s Fischer: Must ‘remain cognizant of the risks ahead’ [The Wall Street Journal via] (Marketwatch)

[Meanwhile] Fed officials seem ready to deploy negative rates in next crisis (Marketwatch)

Wall Street has made Hillary Clinton a millionaire (CNNMoney)

Oil Sands Boom Dries Up in Alberta, Taking Thousands of Jobs With it (The New York Times)

Chemical maker FMC to cut 800-850 jobs, lowers adjusted profit forecast (Reuters) FMC Cuts Profit Forecast as [the Brazilian] Real Slump Hurts Pesticide Sales (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, October 12, 2015

Monday roundup (10-12-15)

This [= Debt] Will Bring The World To Its Knees (King World News)

Europe's crisis of confidence (CNBC)

Italy plans 2.2-bln euro rescue of three small banks - sources (Reuters)

EU says Spain too optimistic on growth, warns on deficit (Reuters)

Fed officials seem ready to deploy negative rates in next crisis (Marketwatch)

5 important countries are dumping US debt (The Business Insider)

The US economy is at risk, and the warning is coming from 'the lowest of the low' (The Business Insider)

What Really Caused The Great Recession (Forbes)

Hillary, Bernie, and the Banks by Robert B. Reich (Robert Reich blog)

Facing a huge deficit, Pennsylvania eyes gambling for help (The Associated Press)

Chemical maker FMC to cut 800-850 jobs, lowers adjusted profit forecast (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, October 11, 2015

Sunday roundup (10-11-15)

Central bank cavalry can no longer save the world (Reuters)

World cannot spend its way out of a slump, warns OECD chief: Angel Gurría says spendthrift countries are leaving themselves exposed to next shock as OECD secretary general warns both sides would lose if Britain left the EU (The Telegraph)

Venice Sinking Under Debt? Mayor Luigi Brugnaro Proposes Sale Of Paintings Worth $454 Million (International Business Times)

Soft UK interest rate take-off could unnerve Britons (Reuters)

Ukraine needs IMF bailout to avoid default (Agence France Presse) Russia, Ukraine fail to reach deal on Kiev debt to Moscow, talks to continue (Reuters)

It's time to start talking about a US recession (The Business Insider)

Fed's Fischer says 2015 U.S. rate rise 'an expectation, not a commitment' (Reuters)

Teamsters’ Pension Fund Warns 400,000 of Cuts [Oct. 6] (The New York Times blogs)

     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, October 10, 2015

Saturday roundup (10-10-15)

Is the global economy heading for recession?: Troubles in emerging markets are beginning to affect the developed world. (Fortune)

Hundreds of thousands [ = perhaps 250,000] protest in Berlin against EU-U.S. trade deal (Reuters) What is TTIP and why is it causing controversy?: The Transatlantic Trade and Investment Partnership aims to create the world's biggest free trade zone [June 17] (The Week) TTIP controversy: Secret trade deal can only be read in secure 'reading room' in Brussels: The European Commission is increasing security of the TTIP text following leaks [Aug 14] (The Independent)

Britain set to fall back into deflation as lower energy costs filter through (This is Money)

     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, October 9, 2015

Friday roundup (10-09-15)

Let's Talk Global Recession — Serious Danger! (Decline of the Empire blog)

Draghi Says Emerging-Market Slowdown Poses Fresh Risk for Europe (Bloomberg)

Greek deflation rises [= worsens] in Sept., prices fall for 31st straight month (Reuters)

Greece needs debt relief, significant extension of maturities - IMF (Reuters)

Italian Output Declines Adding To Signs Of Weaker Global Demand (Bloomberg)

Banca Marche to Be Rescued by Italy's Deposit Guarantee Fund (Bloomberg)

China Sept data likely to show further economic weakness (Reuters)

China concerns leave central banks in difficult spot (Reuters)

Fed Officials See 2015 Rate Rise Provided Economy Stays on Track (Bloomberg)

U.S. oil drillers cut rigs for 6th week on weak crude prices - Baker Hughes (Reuters) Rig Decline Not Done Yet, Analysts Say (NGI's Daily Gas Price Index)

WHY THIS FEELS LIKE A DEPRESSION FOR MOST PEOPLE (The Burning Platform)

Deutsche Bahn plans thousands of job cuts [= "about 5,000"] in overhaul: sources (Reuters)

Standard Chartered to Cut Senior Staff by 25 Percent [= "roughly 1,000 management positions"] (The New York Times blogs)

1,000 jobs lost as [UK] solar firms go into administration: Two solar and home insulation firms lay off staff following Government subsidy cuts (The Telegraph) U.K. Solar Chief Sees More Job Losses After 1,000 Posts Lost (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.

Thursday, October 8, 2015

Thursday roundup (10-08-15)

The global economy is in serious danger (The Washington Post)

The eurozone needs a strong French economy: Economically speaking, France is not as French as it first seems but there is a desperate need for it to embrace some structural reforms [Project Syndicate via] (The Guardian)

Germany, the eurozone’s economic engine, is sputtering as its biggest companies struggle (The Financial Post)

BOE Signals Rate Can Stay Low as Inflation Weakness Persists (Bloomberg)

Saudi Arabia Said to Order Spending Curbs Amid Oil Price Slump (Bloomberg)

Fed awaiting evidence global chill not knocking U.S. off track (Reuters)

Wall Street isn't worried about Hillary Clinton's plan (CNNMoney) Clinton Would Be Among ‘Better’ Choices for Wall Street: Seiberg (Bloomberg) Hillary's Wall Street crackdown: Less than meets the eye (Politico)

Ben Carson Knows Terrifyingly Little About the Government or the Economy (Slate) Ben Carson’s very awkward interview on the economy (The Washington Post)

     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, 10-08-15)

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 Sept 26 to Oct. 3 fell by 13,000 to a seasonally adjusted 263,000, marking the lowest level since mid-July, the government said Thursday." (Marketwatch)

Jobless claims fall to near a 42-year low (Reuters)

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, October 7, 2015

Wednesday roundup (10-07-15)

[US$3] trillion debt binge could spark new global crisis, IMF warns (The Sydney Morning Herald) $3 trillion corporate credit crunch looms as debtors face day of reckoning, says IMF
A poisonous "triad" of global risks is pushing the world to the brink of a new financial crisis, says stark IMF report (The Telegraph) Global Financial Stability Report (The International Monetary Fund)

What Country has the Most Unsustainable Debt? (hint: not Greece) (ValueWalk) Why one map shows Japan as the biggest country in the world (Marketwatch)

German industrial production slumps in August: German industrial production fell massively in August, official data show. Coupled with falling factory orders for the month, the development contributes to fears that the EU's largest economy might be losing steam. (Deutsche Welle)

Deutsche Bank sees Q3 pretax loss of 6 bln eur (Reuters) Deutsche Bank, Bracing for $7 Billion Loss, Mulls Zero Dividend (Bloomberg)

Anti-austerity march draws 80,000 protesters to Belgium's streets: Marking the second protest of its magnitude in less than a year, protesters have criticized the center-right government's labor policies. The demonstration was marred by violence when 200 protesters clashed with police. (Deutsche Welle)

Spain’s Budget Minister Slams EU’s Deficit Target ‘Fixation’: Bloc needs to focus more on economic growth, he adds (The Wall Street Journal)

Once the Biggest Buyer, China Starts Dumping U.S. Government Debt: Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy (The Wall Street Journal)

US consumer credit hi[t]s new record of $3.47 trillion in August, led by auto and student debt (The Associated Press) [But at the same time] Consumer Borrowing in U.S. Rises at Slowest Pace in Six Months (Bloomberg)

Clinton breaks with Obama – on trade, Syria and more (FoxNews) Hillary Clinton comes out against Obama’s Pacific trade deal (The Washington Post)

Groups Issue Warning: Pro-Corporate TPP Could Kill the Internet: "What we're talking about here is global Internet censorship." (Common Dreams)

Robert Reich on Why Capitalism Needs Saving: "The real issue is whether capitalism is organized for the benefit of the society as a whole or for the benefit of a small group," says Reich (Rolling Stone)

Bernanke: I’m not really a Republican anymore (Quartz)

A&P facing deeper layoffs of 10,000 on Thanksgiving (The New York Post)

Monsanto slashing 2,600 jobs, buying back shares as sales fall (Reuters) Monsanto to Cut 2,600 Jobs in Restructuring: Biotech seed giant also gives a downbeat forecast for its fiscal year as quarterly loss widens (The Wall Street Journal)

Irish Water 'plans to cut 1,200 jobs over next six years' (The Irish Independent)

Glencore closes Eland platinum mine in South Africa, cuts 818 jobs (Reuters)

[Australian rail group] Aurizon cuts more than 800 jobs to become 'leaner, smarter, more efficient' (The Sydney Morning Herald)

     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.