Thursday, January 7, 2016

Thursday roundup (01-07-16)

World Bank cuts global growth forecast (USAToday) World Bank cuts global economic growth outlook (Reuters)

2016 Theme #4: The End-Game of Debt-Fueled "Growth" by Charles Hugh Smith (of two minds blog)

Oil down again to 12-year low; $30 handle looks more likely (Reuters)

The World Wary as US Federal Reserve Declares End to Debt Crisis: Federal Reserve lifted interest rates for first time since 2007, aiming for normalization; emerging markets may struggle (Yale Global)

George Soros Sees Crisis in Global Markets That Echoes 2008 (Bloomberg)

Eurozone unemployment falls to lowest level in over 4 years [= 10.5 percent] but retail sales slip during the month (The Associated Press)

Merkel has run out of bazookas: Germany has few options when the issue of Greece’s debt returns to the headlines (Marketwatch)

Why Investors Should Be Wary of Italy: Compared to Greece, Italy is an economic powerhouse. But its debt crisis could render companies powerless. (U. S. News & World Report)

George Osborne's warnings about the economy show how fragile his austerity-led recovery is: The Chancellor's warnings of a 'cocktail' of serious threats make the Autumn Statement seem a long time ago (The Independent) Here's the real threat to the UK economy, and it's got nothing to do with China: Osborne has warned about risks to the UK economy, but he didn't mention the burgeoning current account deficit, which makes Britain ever more vulnerable to a "sudden stop" balance of payments crisis (The Telegraph)

Capital flight pushes China to the brink of devaluation: Beijing cannot keep burning through reserves at a record pace to defend the yuan and at the same time loosen monetary policy. It has to choose by Ambrose Evans-Pritchard (The Telegraph)

Be Scared of China's Debt, Not Its Stocks (BloombergView)

[Banks in the United States are] Too big to fail, and only getting bigger (Oxfam America blogs)

Note To Joe Stiglitz: Banks Originate, Not Intermediate, And That's Why Aggregate Demand Is Stuffed by Steve Keen (Forbes)

40% of millennials have used a pawnshop or payday lender: Twenty-somethings are turning to these practices because they’re struggling financially (Marketwatch)

Yahoo Plans to Lay Off At Least 1000 Employees: Report (Variety)

     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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