Wednesday, January 20, 2016

Wednesday roundup (01-20-16)

Fears of global liquidity crunch haunt Davos elites: Rising Fed interest rates means "liquidity could drop dramatically, and that scares everyone", warns IMF deputy by Ambrose Evans-Pritchard (The Telegraph)

We're about to experience a 'full-blown deleveraging spiral': Pro (CNBC)

With the markets in turmoil, the risk of deflation is high: In the UK and France, inflation is running at 0.2 per cent; Germany is at 0.3 per cent and the US at 0.5 per cent (The Independent)

Default risk in energy debt seen as higher than Great Recession: Analyst: When energy companies’ cash flow turns negative, oil could reach a bottom (Marketwatch)

Low Oil Complicates Struggle to Raise Eurozone Inflation (The Associated Press)

Deutsche Bank expects to post record 6.7 billion euro net loss for 2015​ (Reuters)

Greek Prime Minister Alexis Tsipras to Push Creditors for Less Austerity in Davos: Leader meeting with heads of the International Monetary Fund, European Central Bank and top German and U.S. officials (The Wall Street Journal) Greece Must Improve Pension Bid to Win Debt Ease, Moscovici Says (Bloomberg)

Italy Must Start Reducing Debt-to-GDP Ratio, EU's Moscovici Says (Bloomberg)

The Bank of England is at risk of sleepwalking into a financial crisis: Commodity prices are falling, crude oil is tumbling, market confidence is crashing – the monetary policy committee‘s next move will probably be to cut interest rates by David Blanchflower (The Guardian)

Russia's recession woes deepen amid oil slump: Russian authorities are preparing a stress test for the economy based on oil prices of $25 per barrel. Meanwhile, analysts warn the country could be in for a world of pain if prices continue to plunge. (Deutsche Welle)

BOJ likely to cut coming fiscal year's CPI forecast below 1 percent - sources (Reuters)

[In the United States presidential campaign,] The Clinton Team Is Writing 'Too Big To Fail' Out Of The Financial Crisis: Why grapple with history when you can just rewrite it? (The Huffington Post)

5 reasons why Venezuela's economy is in a 'meltdown' (CNNMoney)

Shell, BG Group job cuts will rise to 10,000 (FuelFix blog)

Barclays’ axe set to fall on 1,000 more jobs in investment bank [The Financial Times via] (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.

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