Tuesday, February 9, 2016

Tuesday roundup (02-09-16)

Creditors must brace for a tsunami of losses in a world awash with debt: Countries have taken on far more debt than can ever be repaid. As the European banking sell-off is already signalling, creditors are in for a brutal awakening. Get ready for debt restructuring mayhem. (The Telegraph) Debt, defaults, and devaluations: why this market crash is like nothing we've seen before: A pernicious cycle of collapsing commodities, corporate defaults, and currency wars loom over the global economy. Can anything stop it from unravelling? [Dec. 6] (The Telegraph)

Central Banks [Through Ultra-Loose Monetary Policy] Make Global Economy Vulnerable, OECD's White Says (Bloomberg)

European banks face major cash crunch: European banks may have to pare down assets to bolster capital reserves as cheap oil is taking a toll on portfolios of energy-exposed loans. (CNBC) Bank of America: This Chart Shows 'Deteriorating Liquidity' Is at the Heart of Market Carnage (Bloomberg) Europe's 'doom-loop' returns as credit markets seize up: 'We all know that QE2 is not really going to work but the market says "I’m a smoker, I know it kills me, but so long as I can get cigarettes, I’m happy"' by Ambrose Evans-Pritchard (The Telegraph)

ECB's Villeroy de Galhau says deflation battle is not over (Reuters)

German output drop raises doubts about growth prospects (Reuters) EU facing IMMINENT recession? Germany on brink as warning issued over Deutsche Bank: FEARS of a recession in the Eurozone are rising as Germany's economy shows yet more signs of buckling under global and domestic financial pressures. (The Express)

Deutsche Bank Is ‘Absolutely Rock-Solid,’ Cryan Tells Employees (Bloomberg) The Market Isn't Buying That Deutsche Bank Is 'Rock Solid' (Forbes) No easy way out for Deutsche Bank as investors 'lose faith' (Reuters) How bad will it get for the banks? (USAToday)

Bank of England poised to act if household debt spirals: Bank deputy Sir Jon Cunliffe warns consumer debt remains 'large by historic standards', leaving the economy 'vulnerable to shocks' (The Telegraph)

Banks [in the United States] eye more cost cuts amid global growth concerns (Reuters) Goldman Sachs 'to slash jobs' amid global economic slowdown: US bank intends to slash at least 5pc of its workforce this year, according to reports (The Telegraph)

Financial Reform: It's About Improving the Financial System, Not 2008 by Dean Baker (Truth-Out)

Hillary Clinton won't rule out Wall St. Treasury Secretary (CNNMoney)

Fed May Lack Legal Authority for Negative Rates: 2010 Memo (Bloomberg)

Americans Can’t Help Themselves From Borrowing More on Credit Cards: The typical American is always carrying credit-card debt. (Bloomberg)

MF Global customers recover $8.1B from brokerage's failure (USAToday)

Don't look now: $1 gas may be close (USAToday) Are we returning to the days of 99 cent gas? (CBSMoneywatch)

[Off Topic:] Donate Your Old USB Drives to Fight North Korean Brainwashing (Wired)

     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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