Wednesday, February 17, 2016

Wednesday roundup (02-17-16)

What's holding back the world economy?: QE and low interest rates have disproportionately created wealth in the financial sector and inflated asset bubbles. It has done little for the real economy. The rules of the market need to be rewritten by Joseph Stiglitz and Hamid Rashid [Project Syndicate via] (The Guardian)

High risk of bankruptcy for one-third of oil firms: Deloitte (Reuters)

Negative interest rates are a 'gigantic fiscal failure': When the debt-laden world faces the next global downturn, it will need the full power of helicopter money, not interest rate gimmicks by Ambrose Evans-Pritchard (The Telegraph)

The eurozone can’t survive another banking crisis: Politically, there’s no way Germany can bail out its biggest banks (Marketwatch)

Europe’s banks still too big to fail, but our new response remains to be tested (The Globe and Mail of Toronto)

Eurozone crisis IMMINENT as debt-ridden Italy and Portugal on verge of being new Greece: TROUBLES in the Italian and Portuguese economies could blow up this year to shatter the eurozone, as disastrous Greece almost did last year. (The Express)

Spain’s public debt nears 100% of GDP at end of 2015: Public debt rose €2 billion to €1.070 trillion by the end of December, new figures show [Reuters via] (The Irish Times)

China Debt Binge Spurs S&P Warning as Magnus Sees 'Big Problems' (Bloomberg)

China just began printing an unexpectedly large amount of money (The Business Insider)

Puerto Rico government cites "substantial doubt" about solvency (Reuters)

[Canadian aircraft maker] Bombardier to cut 7,000 jobs (USAToday)

     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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