Monday, November 30, 2015

Monday roundup (11-30-15)

EU to 'break up unless flaws fixed’ [says Yanis Varoufakis, the economist and former Greek finance minister] [The Australian Business Review via] (Business Spectator)

Greece aims for debt relief deal in Feb 2016 after reforms done (Reuters)

Italy’s Bad Debt Experience (The Market Mogul)

Bank of England says [British] households bingeing on cheap credit cards and personal loans at fastest rate since before financial crisis (This Is Money)

Russia risks higher budget deficit, must make choices - Finance Minister (Reuters)

New Fed rule limits its crisis bailout powers (Reuters) Fed officially ends too-big-to-fail lending (USAToday)

Wall Street Banker Brazenly Admits To Loving Bernie Sanders (Dealbreaker) Meet the Wall Street Banker Backing Bernie Sanders (TheTakeAway)

Brazil posts biggest ever primary deficit for October (Reuters)

Gigaset to cut 550 jobs by end of 2018 (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, November 29, 2015

Sunday roundup (11-29-15)

Greek central bank chief says need political consensus to end debt crisis (Reuters)

Australia's budget deficit to blow out by additional $38bn by 2019, report finds: Deloitte Access Economics report calls for spending cuts and says the worsening bottom line is ‘90%’ the fault of the Chinese economy, but partly also down to the Senate (The Guardian)

GOP in panic over Trump (The Hill)

     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, November 28, 2015

Saturday roundup (11-28-15)

Japan's Debt Trap Won't Fix Itself (BloombergView)

     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, November 27, 2015

Friday roundup (11-27-15)

Greece, lenders agree on new set of reforms for more aid: paper (Reuters)

UK imports surge 5.5% in the third quarter and damage UK GDP growth in the process (This Is Money)

November 2015: Unofficial Problem Bank list [in the United States] declines to 255 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.

Thursday, November 26, 2015

Thursday roundup (11-26-15)

Collapse of 'comatose' Schengen will wreck euro, admits Jean-Claude Juncker: Jean-Claude Juncker issues bleakest assessment yet of state of Schengen free-travel zone (The Telegraph)

Italy, France, Belgium vulnerable to shocks because of high debt, low growth: EU (Reuters)

Portugal's Socialist PM sworn in, president warns on budget (Reuters) Portugal's anti-austerity Left take power in watershed moment for the euro: The president threatened to sack the new government if it challenges the EU's Fiscal Compact, deemed a formula for economic depression by Keynesians by Ambrose Evans-Pritchard (The Telegraph)

Vedanta Zambia Unit to Cut 2,500 Jobs as It Shutters Copper Mine (Bloomberg)

Lloyds to cut 945 jobs as part of 3-year restructuring plan (Reuters)

French pharmaceutical firm Servier plans to cut 610 jobs (Reuters)

[In the UK,] Brighton and Hove Council to cut 540 jobs (ITV)

     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, November 25, 2015

Wednesday roundup (11-25-15)

Europe's central banks in quandary as Fed tightening nears (Reuters) [versus] Here’s What Jim Rickards Said about the Fed [= he believes that the Fed will not raise interest rates yet] (MoneyMorning)

NATO survived Cold War, but downed Russian jet provides biggest threat (CNN) Is Turkey Trying to Distract the World From its Debt Crisis Shooting Down a Russian Plane? by Martin Armstrong (Armstrong Economics blog)

George Osborne's Autumn Statement ushers in the end of austerity but increases taxes: The Chancellor uses his Autumn Statement to slow the Government's austerity programme by reversing welfare cuts and protecting police budgets, but increases taxes on property and businesses. (The Telegraph) George Osborne delays the fiscal pain but it will still be ferocious: The Chancellor is right to stop us living so far beyond our means, but he has yet to grapple with the chronic pathologies of the British economy by Ambrose Evans-Pritchard (The Telegraph)

Why China ‘spillover’ poses risks for the euro zone (CNBC) Bank of America: The 'Great Divorce' Between the World's Two Largest Economies Will Drive Currency and Rates Markets in 2016: The "marriage of convenience" is over. (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, 11-25-15)

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

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial jobless claims fell by 5,000 to a seasonally adjusted 271,000 in the period running from Nov. 8 to Nov. 14, the Labor Department said Thursday." (Marketwatch)

U.S. jobless claims fall more than expected (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.

Tuesday, November 24, 2015

Tuesday roundup (11-24-15)

Weather disasters occur almost daily, becoming more frequent [around the globe]: U.N. (Reuters)

European banks sitting on €1tn mountain of bad debt, survey finds: Analysis of 105 banks by European Banking Authority raises concerns over ‘drag on profitability’ from non-performing loans (The Guardian) Europe must tackle bad loans to recover: IMF (CNBC)

Europe – Here we GO Again by Martin Armstrong (Armstrong Economics blog)

The $400 billion ripoff that could destroy the Greek bailout (CNBC)

Socialist Costa to head Portuguese government with uneasy far-left backing (Reuters)

Carney Says Low U.K. Interest Rates to Remain `For Some Time' (Bloomberg)

Majority of Britons now want 'Brexit': Poll (CNBC)

U.S. Consumer Confidence Falls to Lowest in More Than a Year (Bloomberg) America's sentiment toward the jobs market has turned (The Business Insider)

Fed's Tarullo Remains Worried by Low Inflation Despite Job Gains (Bloomberg)

Fed Official Expects Test for Big Banks to Be Stricter (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.

Monday, November 23, 2015

Monday roundup (11-23-15)

Europe recession 'could be permanent', think tank warns (The BBC)

Euro Area's Negative-Yielding Debt Tops $2 Trillion on Draghi (Bloomberg)

Pressured by dollar gains, commodities hit 13-year low (Reuters)

Four nations risk breaking EU budget rules in 2016: euro zone finmins warn (Reuters)

Greece cleared to get next batch of bailout loans (The Associated Press)

Portugal might be the next stop in the euro crisis (The Washington Post blogs)

Five years into austerity, Britain prepares for more cuts (Reuters)

UK budget deficit could be £40bn in 2020, academics warn: Ahead of chancellor’s autumn statement, City University report says Treasury has underestimated impact of welfare and department cuts (The Guardian)

Russia Declares Its Recession Has Ended Despite Continuing Low Oil Prices And Sanctions (International Business Times) Oops, Russia Recession Not Done Yet (Forbes)

Even After a Rate Hike, the Fed Will Probably Keep Rates Unusually Low for Years: Bond dealers expect the Fed to continue boosting inflation (Bloomberg)

Unemployment Debt Weighs on U.S. States 6 Years After Recession (Bloomberg)

Student Loan Debt Is a National Problem That Needs a Solution (AFL_CIO blogs)

Detroit Public Schools Bankruptcy Could Cost the State $3.4 Billion: Treasury report outlines what Michigan taxpayers would be liable for (Michigan Capitol Confidential)

HSBC To Cut 2,000 Jobs In Commercial Bank Unit: Europe's biggest lender is to cut 2,000 jobs in its commercial banking division as it battles to reduce costs, Sky News learns. (SkyNews) HSBC Said to Plan Cutting 2,000 Jobs in Commercial Bank Division (Bloomberg)

Oil Workers Brace For Fresh Layoffs, As Industry Wrestles With ‘Lower For Longer’ Crude Prices: Many workers losing their jobs today are expected to leave the Texas oil industry, or retire, before prices recover. (Houston Public Media) Oil companies brace for big wave of debt defaults (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, November 22, 2015

Sunday roundup (11-22-15)

Italy launches 3.6 bln euro bank rescue with new fund (Reuters)

An economic recovery few people feel [in the United States] (The Week)

     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, November 21, 2015

Saturday roundup (11-21-15)

Global Oil Job Cuts Top 250,000 (Bloomberg)

Baltic Dry Shipping Index Drops to All-Time Low (Bloomberg)

Fed's Williams sees strong case for December interest-rate hike (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.

Friday, November 20, 2015

Friday roundup (11-20-15)

Paris attacks deal fresh blow to struggling eurozone economy: European Central Bank expected to increase quantitative easing as French consumer spending collapses amid ‘avalanche’ of tourist cancellations (The Guardian)

ECB chief: ‘won’t hesitate’ to expand stimulus if needed (The Associated Press)

[UK's] NHS in 'unprecedented financial meltdown': Agency staff and bed-blocking blamed as deficit hits £1.6 billion in just six months (The Daily Mail)

[In the United States,] Fed Says Mortgages Push Household Debt to Highest Since 2010 (Bloomberg)

Half of New Yorkers Say They Are Barely or Not Getting By, Poll Shows (The New York Times)

Ky. retirement system faces $19.6B shortfall (The Louisville Courier-Journal)

Jindal plan to close $487M budget deficit [in the state of Louisiana] wins approval (The Associated Press)

SocGen Will Cut 2,000 Jobs by 2020 as Part of Branch Closures (Bloomberg)

Layoffs to follow holiday furloughs at Honeywell; whisteblower says 1K Valley workers will lose jobs (ABC15)

Tyson Foods to close two plants, cut 880 jobs (Reuters)

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

Thursday, November 19, 2015

Thursday roundup (11-19-15)

Economic growth in developed economies slows: OECD (Marketwatch)

Antibiotic resistance: World on cusp of 'post-antibiotic era' (The BBC)

Goldman eyes $20 oil as glut overwhelms storage sites: “The world is floating in oil. The numbers we are facing now are dreadful," said David Hufton from PVM Group by Ambrose Evans-Pritchard (The Telegraph)

How Terror Could Kill the European Project (Time)

ECB minutes: risk of inflation target miss increased (Reuters) ECB's top economist signals need to act to maintain confidence [that is, to avert a slide in prices] (Reuters) Some ECB Officials Wanted October Easing on Deflation Risk (Bloomberg) ECB minutes: Bigger Eurozone QE programme now looks like 'done deal' (CityAM)

China c.bank cuts borrowing costs, eyes market-based rates (Reuters)

[In the United States,] Subprime Auto Lending Soars As Fed Report Shows Spike In Loans To Underqualified Borrowers (ZeroHedge blog)

Taxpayers will pay billions more as CalPERS lowers estimate of investment returns (The Los Angeles Times)

U.S. clears genetically modified salmon for human consumption (Reuters) 7 Things You Need To Know About GMO Salmon (Time) Environmental Groups Worry that GM Salmon Could Cause Irreparable Harm (Vice) Canada sued over approval of genetically modified salmon scheme: US firm’s plan to produce GM salmon eggs in Canada and ship them to Panama threatens contamination of wild fish in a ‘huge live experiment’, lawsuit argues (The Guardian)

New research reignites concerns that pesticides are harming bees (The Washington Post) The World’s Most Popular Insecticides Are Messing With Bees: They’re turning them into incompetent pollinators, which is bad news for plants—and humans. (The Atlantic) New Research [Also] Links [The Same] Neonicotinoid Pesticides to Monarch Butterfly Declines [April 4] (Independent Science News)

Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety) Say "No" to GMOs (Non-GMO Project) THE GREAT GMA COVERUP INFOGRAPHIC (TheBoycottList) GMO Free USA (Facebook) Millions Against Monsanto by OrganicConsumers org (Facebook)

     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, 11-19-15)

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

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial jobless claims fell by 5,000 to a seasonally adjusted 271,000 in the period running from Nov. 8 to Nov. 14, the Labor Department said Thursday." (Marketwatch)

Jobless Claims in U.S. Keep Hovering Near Four-Decade Lows (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, November 18, 2015

Wednesday roundup (11-18-15)

Finland's depression is the final indictment of Europe's monetary union: Finland has lost a quarter of its industry since 2008 even though it is the poster-child of EMU competitiveness by Ambrose Evans-Pritchard (The Telegraph)

[In the United States,] We’re Well Below Target Inflation…by Every Measure (CEPR blog)

More work to ensure large banks can be wound down: Fed's Dudley (Reuters)

U.S. pursuing criminal cases against RBS, JPMorgan executives: WSJ (Reuters)

Puerto Rico default nears as debt deadline looms (CNBC)

Teck Resources to slash 1000 more jobs, cut spending (Reuters)

Cloud software maker Citrix to spin off GoTo business, cut [about 1,000] jobs (Reuters)

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

Tuesday, November 17, 2015

Tuesday roundup (11-17-15)

El Nino on track to be one of the 'worst ever': UN (CNBC)

Four euro zone countries [Italy, Lithuania, Austria and Spain] risk breaking EU rules with 2016 budgets (Reuters)

German auditors warn of risks to balanced budget: A German financial watchdog has warned the German government's preoccupation with balanced annual federal budgets covers up a number of underlying risks. They point to grave structural discrepancies. (Deutche Welle)

Greece reaches deal with lenders over reforms unlocking stalled aid (Reuters)

Britain remains stuck in deflation: Falling price of travel and university tuition fees sees consumer prices dip 0.1pc in October (The Telegraph)

Economic Contractions Are Becoming Awfully Common in Japan: Japan ties with Italy as the worst in the G-7 (Bloomberg)

Japan's Problems Will Not Be Solved By More QE, RBS Warns (ZeroHedge blog)

4 years after Occupy Wall Street, big banks [in the United States] are hurting (CNNMoney)

5 Reasons Why Glass-Steagall Matters (The Huffington Post)

Telus cuts 1,500 jobs from Canadian workforce (The Vancouver Sun)

     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, November 16, 2015

Monday roundup (11-16-15)

End of ‘Too-Big-to-Fail’ Banking Era Endorsed by World Leaders (Bloomberg)

France swats aside EU budget rules in rearmament blitz: “The security pact takes precedence over the stability pact. France is at war,” said President Hollande by Ambrose Evans-Pritchard (The Telegraph)




Finnish parliament will debate next year leaving euro zone (Reuters)

[In the UK,] Barclays, HSBC, Royal Bank of Scotland 'at risk of further penalties': Investigations into financial crisis conduct show ‘no signs of abating’, warns Moody’s (The Guardian)

Japan Economy Contracts 0.8%, Returning to Recession (The New York Times)

Manufacturing in New York shrinks for fourth straight month on weak orders, less hiring (The Associated Press)

Gas Prices Are Plummeting, $1.50 Per Gallon Coming Soon (Money)

Car loans hit $1 trillion for first time (CNNMoney)

Warren Investigation Finds Taxpayers Could Be on the Hook for $10 Trillion in Risky Derivatives: After Congress rammed through a 'cromnibus' spending bill last year that repealed parts of Dodd-Frank financial regulation, UMKC's Bill Black explains how with or without this repeal another Wall Street bailout is still a real possibility (The Real News) (Youtube)



Enbridge trims [500] jobs as company copes with energy downturn (The Globe and Mail of Toronto)

     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, November 15, 2015

Sunday roundup (11-15-15)

Barack Obama leads G20 vow to step up fight against Isis [The Financial Times via] (CNBC)

Finance chiefs [throughout Europe] feel less confident due to eurozone woes: Large poll of chief financial officers finds confidence is waning in corporate spending and the overall economy, even as profits improve (The Telegraph)

France launches strikes in Syria after Obama vows to help hunt down perpetrators of Paris attacks (The Washington Post) France Launches Airstrikes Against Islamic State Stronghold in Syria: U.S. is giving targeting intelligence to France for retaliatory strikes after Paris attacks (The Wall Street Journal)

France Asks for Systematic Controls Within Schengen Border Area (Bloomberg)

Why Italy may need to leave the euro zone soon: Matteo Renzi’s may know how to win votes but is it just more of the same? (The Irish Times)

Greece misses bailout deadline as talks with creditors drag on: Talks continue on repossession legislation the Syriza government says would push austerity-hit Greeks over the edge (The Guardian)

Lawmakers to question Bank of England on gilt market risks (Reuters)

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

Saturday, November 14, 2015

Saturday roundup (11-14-15)

Hollande says Paris attacks an ‘act of war’ by Islamic State group (France24) Three Teams of Coordinated Attackers Carried Out Assault on Paris, Officials Say; Hollande Blames ISIS (The New York Times)

Commodity trader Cargill restructures, cuts [as many as 4,000] jobs - sources (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.

Friday, November 13, 2015

Friday roundup (11-13-15)

Slower-than-expected euro zone growth likely to seal more ECB stimulus (Reuters) Eurozone recovery loses steam as Germany slows: French economy grows 0.3% in third quarter but Germany, Finland, Greece, Netherlands, Italy, and Portugal all undershoot market expectations (The Guardian)

France runs out of cash until end of the year (The Local)

Italy Economy Slows, Making Return to Sustainable Growth Harder (Bloomberg)

Britain's economic recovery is precarious and an economic storm could be coming: Rising debt, a house price bubble, cheap money - does any of that sound familiar? (The Independent)

Treat rogue bankers like shoplifters and throw them in jail, says Osborne as he rejects pleas to 'move on' from the crash (The Daily Mail)

China's Troubled Credit Swells to Sweden-Sized $628 Billion (Bloomberg)

Weak retail sales [in the United States] suggest moderate fourth-quarter economic growth (Reuters)

Roche to take $1.6 billion charge to close sites in Europe, U.S. [= up to 1,200 job losses] (Reuters)

Tribune Publishing is buying out 500 employees (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.

Thursday, November 12, 2015

Thursday roundup (11-12-15)

Euro-Area Industrial Production Falls 0.3%, More Than Forecast (Bloomberg) Euro zone production falls more than expected in September (Reuters)

Greek Strike Shows Conflict Within Government Over Austerity (The New York Times) Greek Debt Crisis: Workers Strike Against ‘Unfair’ Bailout Terms As Lender Pressure Mounts (International Business Times)

UK's David Cameron faces Conservative pushback on austerity (CNNMoney)

Between Debt and the Devil by Adair Turner, book review: A radical analysis: What's novel in Turner's book is not the proposition that debt can be dangerous, but that debt is what modern financial systems naturally create; and always to excess (The Independent) Fresh thoughts: A British regulator on the financial crisis (The Economist)

Slump in China credit in Oct highlight growth challenges (Reuters) China Credit Growth Falls as Tepid Economy Dents Loan Demand (Bloomberg)

China Speeds Up Fiscal Spending in October to Support Growth (Bloomberg)

Wholesale Inventories [in the United States] Have Never Been Higher Relative To Sales, Ever [Nov. 10] (ZeroHedge blog)

Fed officials lay case for December liftoff (Reuters)

Glass-Steagall takes center stage in 2016 (The Hill)

Former Citigroup CEO: Big banks don't work (CNNMoney) Citigroup's former CEO thinks the 'glory days' for big banks are gone forever (The Business Insider)

Goldman Sachs Says Corporate America Has Quietly Re-levered: One of the biggest post-financial crisis imbalances sits on corporate balance sheets, according to analysts at the bank. (Bloomberg) Yeah. This is Going to End Well. (The Mess That Greenspan Made blog)

Moody's sees Puerto Rico defaulting on some debt payments due Dec. 1 (Reuters)

Heavy-Equipment Dealer Finning Slashes 1,100 Jobs: Cuts bring overall workforce reductions to 13% this year for Caterpillar equipment dealer (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.

Is it a recovery yet? (Weekly report, 11-12-15)

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

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial jobless claims were [unchanged at] a seasonally adjusted 276,000 in the period running from Nov. 1 to Nov. 7, the government said Thursday." (Marketwatch)

SEE LAST WEEK'S POST HERE.

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

Wednesday, November 11, 2015

Wednesday roundup (11-11-15)

Negative Interest Rates the New Normal Next Time Economies Slump (Bloomberg)

G20 Finalizes Bank Bailin Rules (Cliff Küle’s Notes blog)

ECB to consider QE boost, deposit rate cut to hit target - Visco (Reuters)

ECB mulls buying debt of cities and regions - sources (Reuters)

'Sick man of Europe' Finland agonizes over austerity (Reuters)

Fitch warns that Portuguese government debt is at risk of downgrade if Socialists take over (CityAM)

‘Pause’ in growth means bigger deficit, Ottawa’s budget office says: Updated figures released Tuesday suggest a slowing economy will make it tougher for the Liberals to fulfil their election promise to balance the books by 2019-20. (The Canadian Press)

GOP contenders [for next US President] try to channel Warren on Wall Street: During the debate Republicans sounded surprisingly like left-wing hero Elizabeth Warren. (Politico) Now Republicans hate Wall Street too (CNNMoney) Why GOP Debate Was a Bad Sign for Big Banks (The American Banker)

[versus] Republicans Are Obsessed With Deregulating Wall Street: They just don't like to put it that way. (The Huffington Post) GOP candidates unified on keeping big banks intact (The Deal Pipeline) The ghosts of 2008: Watching the Republican candidates talk about the financial crisis was a reminder of why they'd prefer not to. (Politico)

The Lessons of Repealing Glass Steagall (The Huffington Post)

Connecticut Lawmakers Look To Plug $1.4 Billion Budget Gap (CBSNewYork) Lower Tax Revenues = Grimmer Connecticut Budget Picture (The Hartford Courant)

Despite tax hike, Chicago still faces huge pension fund gap (CNBC)

Macy's cuts full-year forecast, sends shivers through retail (Reuters)

[Italy's] UniCredit to shed 18,200 jobs and boost capital (Reuters)

Carlsberg Advances Most in Five Years as Brewer Cuts 2,000 Jobs (Bloomberg)

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

Tuesday, November 10, 2015

Tuesday roundup (11-10-15)

World energy watchdog fears 1970s oil crunch as Mid-East regains stranglehold: The Mid-East share of global oil exports will rise to 75pc if oil prices stay low and investment collapses, risking a strategic crisis in the future by Ambrose Evans-Pritchard (The Telegraph)

Fresh fears for the Eurozone after Portuguese government is ousted by Left-wing alliance promising spending spree and tax cuts - despite €78bn bailout from Europe (The Daily Mail) Portugal’s Government Ousted in Challenge to Austerity (The New York Times) Portuguese lawmakers force government to resign by rejecting its austerity policies (The Associated Press) New Portugal government's anti-austerity drive complicates eurozone budget plans (Financial Review)

Greek deflation eases in Oct., prices drop for 32nd straight month (Reuters)

Surging living costs leave only 50pc of Britons saving into pensions: Pensions are moving down the agenda for low earners, who are struggling to pay the bills (The Telegraph)

China's Deflation Pressures Signal More Monetary, Fiscal Easing (Bloomberg)

Fed's Williams says 'very strong case' to raise rates next month (USAToday) Onto The Next Question (Tim Duy's Fed Watch blog)

Americans are piling on record debt (CBSMoneywatch)

     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, November 9, 2015

Monday roundup (11-09-15)

World flirts with global recession as trade growth slows, warns OECD: Organisation for Economic Co-operation and Development trims global growth forecasts amid a "deeply concerning" slowdown in global trade and slower growth in emerging markets as economists urge the Chancellor to rethink cuts (The Telegraph)

Global GDP Worse Than Official Forecasts Show, Maersk Says (Bloomberg)

Global banks still too big to fail: Regulator (USAToday) 'Too big to fail' banks need $1.2 trillion (CNNMoney)

Creditors Withhold 2 Billion Euro Bailout Payment From Greece (The New York Times) Euro zone won't release new money for Greece until reforms done (Reuters)

Leftists ready to topple Portugal’s austerity premier: Markets rattled as Portugal poised to get Socialist-led government backed by far left. (Politico) Germany loses key ally in Portugal as austerity regime crumbles: 'We don’t have a coup here: we have democracy. Whoever lacks the votes in the national assembly cannot govern,' says the leader of the Left Bloc by Ambrose Evans-Pritchard (The Telegraph)

Britons face financial ruin as debts set to rocket when interest rates rise: BRITISH households are awash with debt and are in for a rude awakening when rates rise, experts have warned. (The Express)

Ex-GAO head [David Walker]: US debt is three times more than you think (The Hill blogs)

Presidential candidates need to discuss national debt by Scott McCallum, a former governor of Wisconsin (The Journal-Sentinel of Milwaukee, Wisconsin)

St. Louis Fed: There Is No Chance Inflation Will Be Out of Control Over the Next Year: A new inflation model suggests big price increases are still far away. (Bloomberg)

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

Sunday, November 8, 2015

Sunday roundup (11-08-15)

Austerity’s Grim Legacy by Paul Krugman (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, November 7, 2015

Saturday roundup (11-07-15)

Germany border crackdown deals blow to Schengen system: Decision to re-establish national border controls will shock the rest of the EU and may spur it towards a more coherent strategy on refugees (The Guardian)

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

Friday, November 6, 2015

Friday roundup (11-06-15)

Significant Divisions Remain Between Greece and Its Creditors Over Reforms: More than two-thirds of reforms implemented, EU says, but those that remain present challenges for the government (The Wall Street Journal) No accord yet on Greek debt payment, EU sources say (Agence France Presse)

Problematic loans at Italian banks rise to 361 bln euros (Reuters)

Japan economy likely fell into technical recession in third quarter (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, November 5, 2015

Thursday roundup (11-05-15)

Deflation Risks May Warrant Radical New Central-Bank Thinking, the IMF’s Chief Economist Says (The Wall Street Journal blogs)

EU predicts economic recovery at 'modest pace' next year; too much debt, not enough investment (The Associated Press) EU Cuts Growth and Inflation Outlook as ECB Decision Looms (Bloomberg)

Dovish BoE dampens rate hike expectations (CNBC) Bank of England shies away from early 2016 rate rise (Reuters)

Fed would consider negative rates if economy soured - Yellen (Reuters)

Compass Point: Fannie Mae, Freddie Mac will need another bailout: It’s no longer a question of if. It's a question of when (HousingWire)

Clinton, Warren Still at Odds on Banking Policy: Warren continues to make the case for reinstating Glass-Steagall provisions separating commercial and investment banking. (NationalJournal)

Telus to cut 1,500 jobs but hike dividend 5% (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.

Is it a recovery yet? (Weekly report, 11-05-15)

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

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial jobless claims in the period running from Oct. 25 to Oct. 31 shot up by 16,000 to a seasonally adjusted 276,000, the government said Thursday." (Marketwatch)

SEE LAST WEEK'S POST HERE.

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

Wednesday, November 4, 2015

Wednesday roundup (11-04-15)

CEOs wary of economic conditions worldwide: Survey (CNBC)

Eurozone Economic Growth Remains 'Frustratingly Weak' (The Associated Press) Euro zone business growth remained tepid in October: PMI (Reuters)

E.U. Is Split Over How to Prepare for Euro Crises to Come (The New York Times blogs)

Japan PM calls for steps to achieve a $5 trillion economy (Reuters)

U.S. Presses Europe to Take Steps to Reduce Greece's Debt Burden (Bloomberg)

UK shop prices fall for 30th consecutive month in the run up to Christmas: Clothing, books and DIY items were among the goods that experienced the deepest levels of deflation (The Independent)

Kansas could face a $100M budget deficit (Kansas City Business Journal blog)

MCTS [= the Milwaukee County Transit System] faces $1.5 million budget deficit (WDJT)

Maersk Line to Cut Capacity and [4,000] Jobs as Global Demand Sags (Bloomberg)

Kraft Heinz to Close 7 Plants in US, Canada, Cut 2,600 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.

Tuesday, November 3, 2015

Tuesday roundup (11-03-15)

These are the world’s 30 ‘too-big-to-fail’ banks: J.P. Morgan and HSBC pose biggest risk to financial system (Marketwatch) World's Biggest Banks Still Not `Truly Resolvable,' FSB Says (Bloomberg)

Scandal at [Germany's] Volkswagen widens with new problems in C02 emissions in 800,000 vehicles (The Associated Press) VW Emissions Issues Spread to Gasoline Cars (Bloomberg) Volkswagen also lied about its gas-powered cars (engadget)

One Analyst Says China's Banking Sector Is Sitting On A $3 Trillion Neutron Bomb (ZeroHedge blog)

U.S. factory orders fall for second straight month (Reuters) US factory orders fell 1 pct. in September, with weakness in aircraft and business investment (The Associated Press)

The Rigging of the American Market by Robert Reich (The Huffington Post)

Elizabeth Warren faces test of her clout as Hillary Clinton consolidates support (The Los Angeles Times)

Standard Chartered Bank to Raise $5.1 Billion and Cut 15,000 Jobs (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.

Monday, November 2, 2015

Monday roundup (11-02-15)

Global factories struggle as stimulus fails to spur (Reuters)

Eurogroup's Dijsselbloem: Greece has 'much work to do' on debt (Reuters)

Porsche, more Audi models pulled into VW emissions scandal (Reuters) 10,000+ More Volkswagen Vehicles Have Emissions Cheating Mechanisms, EPA Says (ABCNews)

China's manufacturing sector contracts for third month in a row: Official PMI came in at 49.8 for October, while new export orders were also down for the 13th month in succession (The Guardian)

President Obama signs 2-year budget deal (CBSNews)

$20 trillion man: National debt nearly doubles during Obama presidency (The Washington Times)

An earnings recession is looming: S&P 500 EPS on track to suffer back-to-back quarterly declines for first time since the Great Recession (Marketwatch)

The Liquidity Gap (The Big Picture blog)

Why do so many young adults live at home? A record 34.5 percent of Millennials live at home with their parents in California. (DrHousingBubble)

     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, November 1, 2015

Sunday roundup (11-01-15)

Eurozone banks still swamped with bad loans: British and American banks have acted fast to clean up their balance sheets, but European lenders are still weighed down with loans which are not being paid off (The Telegraph)

[In the United States,] The Congressional GOP is destroying itself: Why its reliance on extremists is slowly poisoning it to death: A new poll reveals how the Tea Party that helped it take Congress is now sullying whatever remains of its luster (Salon)

     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.