Friday, January 29, 2016

Friday roundup (01-29-16)

Japan imposes a negative interest rate: What that means for them and us (The Los Angeles Times) Bank of Japan’s negative rate decision is a mark of ‘desperation’: Move marks ‘capitulation’ over effectiveness of QE: economist (Marketwatch) "The BoJ's NIRP Will Result In More Currency Wars And Global Growth Slowdown" (ZeroHedge blog) [Former US Federal Reserve Chair] Bernanke says Fed likely to add negative interest rates to recession-fighting tool kit (Marketwatch)

'China's debt avalanche is the biggest worry' (CNBC)

Slow lending pace doesn't bode well for eurozone: The European Central Bank's plan to reinvigorate the eurozone economy isn't having the desired effect, new data show. Pumping more than a trillion euros into the financial system has barely boosted banks' net lending. (Deutsche Welle)

Italy's bank debt clean-up: a small step: Italian banks are in trouble, burdened by an estimated 200 billion euros' worth of non-performing loans. Now bank balance sheets are to be cleaned up. But will that be enough to re-start Italy's sputtering economy? (Deutsche Welle)

Bank of England to force bigger UK lenders to hold more capital as 'risk buffer': Threadneedle Street wants banks and building societies to be able to continue lending in times of stress (The Guardian)

U.S. GDP fizzles in the fourth quarter: Growth tapers off as consumers, businesses cut back (Marketwatch) Cracks in America's economy are growing (CNNMoney)

U.S. manufacturing teeters on the edge of recession: Capital spending is down, but production and hiring are still rising (Marketwatch)

Fed to Stress-Test 33 Banks on Weathering Global Recession (Bloomberg)

Brazil 2015 budget gap hits record as austerity fails (Reuters) Brazilian Budget Gap Hits Record as Commodity Boom Turns to Bust (Bloomberg)

Caterpillar closing 5 plants, cutting 670 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.

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