Saturday, April 30, 2016

Saturday roundup (04-30-16)

Jim Bianco Warns "The Risk Of An 'Accident' Is Very High" (ZeroHedge blog)

The Euro's Failure: Eurozone GDP Now Only Just Back To 2008 Levels (Forbes)

Why Japan’s battle to end its deflationary slump matters (The Telegraph)

April 2016: Unofficial Problem Bank list [in the United States] declines to 214 Institutions (Calculated Risk blog)

Trust Company Bank, Memphis, TN, Closed by Regulators [as posted here yesterday] (Problem Bank List)

     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.

Friday, April 29, 2016

Friday roundup (04-29-16)

The global economy’s wild ride is being fueled by too much debt: Countries need to return to growth without the aid of debt-fueled overconsumption by Simon Johnson (Marketwatch)

Dallas Fed cautions on fresh oil bubble as [global] glut keeps building by Ambrose Evans-Pritchard (The Telegraph)

RBS plunges to a £1bn loss on bailout-era costs (The Telegraph) RBS's loss more than doubles, dividend prospects darken (Reuters)

Bank of England likely to keep rates unchanged until early 2017: Reuters poll (Reuters)

Debt bubble fears increase as consumer credit [in the UK] soars to 11-year high (The Telegraph) The chart that shows we put more on our credit cards in March than in any month in 11 years: Credit card debt grew by more in March than in any month since March 2005 according to new figures from the Bank of England (The Independent)

IMF agrees $1.5 billion bailout for Sri Lanka to avert balance of payments crisis (Reuters)

Freddie Mac may need another taxpayer bailout next week (Marketwatch)

Millions Face Pension Cuts Thanks to Wall Street Recklessness: The big bank executives who gambled away working Americans' benefits are still getting lavish packages as the social safety net collapses. (Moyers & Company)

Regulators close small Tennessee bank (The Associated Press) Trust Company Bank of Memphis TN had a troubled assets ratio of 297.9 percent. (BankTracker)

Chevron to Cut More Jobs [= Another 1,000] as It Reports Wider-Than-Expected Loss: Exploration and drilling business hit hard by plunge in oil price (The Wall Street Journal)

     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.

Thursday, April 28, 2016

Thursday roundup (04-28-16)

Greek deal closer, euro zone finance ministers to meet May 9 (Reuters)

Yanis Varoufakis: Bailouts of Greece are Pretense for Massive Payout for German and French Banks (Democracy Now!) Former Greek Finance Minister: Massive IMF Bailouts are "Ponzi Austerity" Scheme (Democracy Now!)

Deutsche Bank Q1 'most challenging in several decades': CFO (CNBC)

Japan's Abenomics 'dead in the water' after US currency warnings by Ambrose Evans-Pritchard (The Telegraph)

U.S. economy stalls in first quarter as activity weakens broadly (Reuters) Sluggish US growth forms part of a worrying global trend: The global economy is running out of steam and the conventional weapons are increasingly ineffective (The Guardian)

Americans' confidence in economy at 2016 low (CNNMoney)

Atlantic City, America’s Worst-Rated Town, Stares at Default: ‘We’re down to a couple of million dollars on any given day,’ mayor says (The Wall Street Journal)

Brazil Posts Worst Primary Budget Deficit for March on Record (Bloomberg)

     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.

Is it a recovery yet? (Weekly report, 04-28-16)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The number of Americans who applied for unemployment benefits last week rose by 9,000 to 257,000, but initial claims continued to cling near a four-decade low." (Marketwatch)

Weekly Initial Unemployment Claims increase to 257,000, Lowest 4-Week Average since 1973 (Calculated Risk blog)

SEE LAST WEEK'S POST HERE.

     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.

Wednesday, April 27, 2016

Wednesday roundup (04-27-16)

EU Says Deal on Greek Bailout Reforms Needed Within Days (The Associated Press) Greek bailout talks stall on impasse over austerity measures: Raises prospect of default by Athens on debts due in July [The Wall Street Journal via] (Marketwatch)

Graduate debt 'higher in England than in US': Sutton Trust report warns finding is 'cause for concern' (Times Higher Education)

Fed signals no rush to raise rates as pace of U.S. recovery moderates (Reuters)

Clinton, Trump Win Big, Look Toward November (The Voice of America) Trump and Clinton: It's time (CNBC)

Puerto Rico poised for default, draws tough talk from governor (Reuters)

Brazil banks brace for fresh wave of loan refinancing deals (Reuters)

Lockheed Martin announces layoffs [of up to 1,500 positions] (WBNG)

     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.

Tuesday, April 26, 2016

Tuesday roundup (04-26-16)

Obama should tell Merkel to let Greece restructure its debt: U.S. should pressure IMF to refuse to go along with the same old failed austerity (Marketwatch)

Greece is asking for an emergency Eurozone Summit (euronews)

Lessons from Japan: Decades of Decay, Unavoidable Collapse by Charles Hugh Smith (of two minds blog)

Last Week Tonight with John Oliver: Puerto Rico (HBO) [includes some vulgarity] (Youtube)



     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.

Monday, April 25, 2016

Monday roundup (04-25-16)

Why Eurozone Inflation Expectations Are Going Up and Down at the Same Time: Investors believe in slightly higher inflation in the near term, but are increasingly gloomy about the central bank's power to stoke up prices over the longer run (The Wall Street Journal blogs)

Greece, EU/IMF lenders resume talks over bailout reforms (Reuters)

Discord Pushes Spain Into Fifth Month With No Government (The New York Times)

UK retailer BHS close to collapse with 11,000 jobs at risk (Reuters) The Collapse of BHS is a Warning for the U.K’s Faltering Pension Schemes: With thin yields, pension funds will struggle to find safe assets with yields high enough to meet their liabilities. (The Wall Street Journal blogs)

Clean water crisis threatens US (The Hill)

The Chicago Pension Scandal: $100,000+ Teacher Pensions Costing Taxpayers $1 Billion (ZeroHedge blog)

Puerto Rico Economy Worsens With Crisis, Most Anywhere You Look (Bloomberg)

     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.

Sunday, April 24, 2016

Sunday roundup (04-24-16)

We Could Be Witnessing the Death of the Fossil Fuel Industry—Will It Take the Rest of the Economy Down With It? (PeakOil)

China debt load reaches record high as risk to economy mounts: US-style credit crunch or Japan-style grinding malaise seen as increasingly likely (The Financial Times)

     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.

Saturday, April 23, 2016

Saturday roundup (04-23-16)

ECB's Nowotny says negative rates necessary to avoid deflation (Reuters)

Sovereign-Debt Debate Divides EU as Schaeuble Pushes for Limits (Bloomberg) Schaeuble Sees No Greece Debt Relief as Long as Debt Sustainable (Bloomberg)

5 Signs [United States Republican Presidential Candidate] Donald Trump Is Having a Full-Blown Identity Crisis (Vanity Fair) Trump Says He Doesn't Like Toning Down Rhetoric Amid Calls to be Presidential (NBCNews)

[Democratic candidate] Hillary Clinton isn’t picking Elizabeth Warren for vice president. Here’s why. (The Washington Post) Hillary Clinton Hasn’t Ruled Out Elizabeth Warren As a Running Mate (Vanity Fair) Why Elizabeth Warren Would Have More Clout As Hillary Clinton’s VP: Even Warren’s Senate power can’t beat White House influence. (The Huffington Post) The Most Focused and Effective Democratic Messenger We Have Is Elizabeth Warren: The senator from Massachusetts is delivering a well-developed and stinging critique of Republican extremism—and Ted Cruz’s whining. (The Nation)

Three Reasons Why "Too-Big-to-Fail" Banks Need to Be Broken Up (Truthout)

     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.

Friday, April 22, 2016

Friday roundup (04-22-16)

We can’t save the economy unless we fix our debt addiction (The Washington Post)

ECB action fails to ignite euro zone economy (CNBC)

Austerity is undermining a common European identity. Will fascism result? (The Washington Post)

Greek bailout deal talks constructive, say EU finance ministers: Eurogroup meeting ends with a proposal for Greece to agree to contingency measures that could unlock further chunks of bailout money (The Guardian) Greece bailout talks make 'progress' (The BBC)

U.S. manufacturing gauge falls to lowest in more than six years (Marketwatch)

[Canada's] Cameco cutting 500 jobs at Rabbit Lake uranium mine: Company says low commodity prices forces mining company to suspend Rabbit Lake operations (The Canadian Broadcasting Corporation)

     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.

Thursday, April 21, 2016

Thursday roundup (04-21-16)

Eurozone will face negative rates for years [; inflation 'could turn negative again'], says Mario Draghi (The Telegraph)

Greek talks with lenders fraught as fears grow of default: Crisis returns to Greece as unemployment reaches 30% and debt repayment deadlines loom (The Guardian) Greece, EU/IMF lenders make progress but still no deal (Reuters) The crazy reason we might be facing a huge crisis in Greece again (The Washington Post)

The Germans are revolting over ECB policy (CNBC)

Spain, Portugal miss budget deficit reduction targets in 2015 (Reuters)

Osborne misses target for UK deficit, downturn signals grow (Reuters)

Volkswagen Owners [in the United States] Will Get a Choice: a Buyback or Repairs (The Associated Press)

"This Is Going To Be A National Crisis" - One Of The Largest U.S. Pension Funds Set To Cut Retiree Benefits (ZeroHedge blog)

Sears closing 10 stores and 68 Kmarts (CNNMoney)

Lloyds to axe 625 jobs and shut 21 branches amid cost-cutting: Banking group will move some roles to India as it continues process of shedding 9,000 posts as announced in 2014 (The Guardian)

What Are Tangible Assets? by Martin Armstrong (Armstrong Economics blog)

     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.

Is it a recovery yet? (Weekly report, 04-21-16)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"Initial claims fell by 6,000 to 247,000 in the seven days ended April 16, the Labor Department said. This is the lowest level since the week of Nov. 24, 1973." (Marketwatch)

U.S. Jobless Claims Unexpectedly Drop to Lowest Level Since 1973 (Bloomberg) U.S. jobless claims hit 42-1/2-year low as labor market firms (Reuters)

SEE LAST WEEK'S POST HERE.

     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.

Wednesday, April 20, 2016

Wednesday roundup (04-20-16)

Why We Should Be Really Worried About the Panama Papers: History shows us that tax evasion can have terrible effects, from economic inequality to societal collapse. (Politico)

Greece 'could leave eurozone' on Brexit vote [according to the Economist Intelligence Unit] (The Telegraph) Lenders remain divided over Greece's debt relief - EU official (Reuters) [But] Euro zone ready to finalize Greek deal next week, if talks succeed (Reuters) Here’s why it’s so hard to pull Greece out of its economic crisis (The Washington Post)

Italy Is Euro’s Real Achilles Heel (Economics21) Italian banks have a $350B problem: Top hedge fund manager (CNBC)

Donald Trump and Hillary Clinton Win Easily in New York Primary [for President of the United States] (The New York Times)

Bill Moyers: Campaign Finance Reform — It’s Not Just Liberals Anymore: Bill sits down with former Bush administration lawyer Richard Painter to discuss why conservatives should care about the influence of money in politics — and how they can fight to get it out. (Moyers & Company)

VW to pay each U.S. customer $5,000 to settle dieselgate: Die Welt (Reuters)

Congressman: Puerto Rico is the canary in the U.S. debt mine (The Washington Post)

SHELL TO SLASH 2,000 NETHERLANDS JOBS (NLTimes)

CP job losses mount: up to 1,400 positions could be gone by end of year (The Calgary Herald)

British Gas to cut 684 jobs as it shuts Oldbury call centre (The Telegraph)

     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.

Tuesday, April 19, 2016

Tuesday roundup (04-19-16)

These major economies [= China, the UK] are threat to Germany (CNBC)

Americans still don't see vibrant labor market: DESPITE THE 5% UNEMPLOYMENT RATE, JUST 22% CITE OPPORTUNITIES TO ADVANCE TO BETTER JOBS (USAToday)

Intel to slash 12,000 jobs as it moves away from PCs (The Los Angeles Times) Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight (Bloomberg)

     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.

Monday, April 18, 2016

Monday roundup (04-18-16)

QUOTE OF THE DAY: "Negative interest rates are fueling deflation." -- Martin Armstrong, head of Armstrong Economics (Armstrong Economics blog)

Time to face the piper by Judd Gregg (The Hill)

Britain 'set for BANKRUPTCY amid £1.85trillion of hidden debt': FUTURE generations will inherit a bankrupt country, as the Government hides a staggering £1.85trillion of debt, a think tank has warned. (The Express)

A plodding [United States] dollar: The recent decrease in the velocity of money (The Big Picture blog)

How Lobbying by Tax Preparers Helps Keep Tax Day Complicated: Companies like H&R Block and Intuit are big spenders in Washington — and they're not trying to make our tax returns easier. (Moyers & Company blog)

Centrica [owner of British Gas] to slash 3,000 jobs this year as customer numbers fall and CEO faces investor backlash at AGM (The Telegraph)

     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.

Sunday, April 17, 2016

Sunday roundup (04-17-16)

Wilbur Ross predicts $35-$40 oil, no freeze at June OPEC meeting (CNBC) Top oil countries fail to reach deal on production freeze (CNNMoney)

Greece considers proposal to unblock bailout review talks (Reuters) Greek Minister Reaches Out to Lagarde as Bailout Talks Drag (Bloomberg)

     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.

Saturday, April 16, 2016

Saturday roundup (04-16-16)

Greece’s Creditors Weigh Extra Austerity Measures to Break Deadlock: Bid to bridge differences between Europe and IMF that threaten to unravel Greek bailout (The Wall Street Journal)

Anti-austerity protest: tens of thousands attend London march: Noisy crowd wielding banners, expletive-filled placards and pig effigies descend on capital from across the UK (The Guardian)

     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.

Friday, April 15, 2016

Friday roundup (04-15-16)

IMF Says Greek Debt Numbers Don't Add Up as EU Defends Its Plan (Bloomberg) IMF could back away from Greek bailout if debt deal is not agreed (The Telegraph)

Household debt binge hits pre-crisis levels as Britons go mad for new cars and cheap loans, Bank of England warns (This is Money)

Chinese economy shows signs of debt-fueled recovery (Reuters) China's economy grows at weakest pace in seven years (The Telegraph) As China’s Growth Slows, Banks Feel the Strain of Bad Debt (The New York Times)

Intel plans to cut thousands of jobs: report (Reuters)

     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.

Thursday, April 14, 2016

Thursday roundup (04-14-16)

Policymakers fret as storm clouds gather over world economy (Reuters)

Central banks have it all wrong with their focus on cutting interest rates by Joseph E. Stiglitz (Marketwatch)

'A storm is brewing' - Germans worry about return of euro crisis (Reuters)

Eurozone Inflation Rate Revised up to Zero in March (The Associated Press)

IMF’s Lagarde issues call to ‘get real’ on Greek crisis (France24)

Will Treasury Debt Bomb Explode Future Economic Growth [in the United States]? (The Desert Sun)

Our Debt Problem Needs Action—Not Empty Promises (Time)

United Launch Alliance to lay off up to 875 by end of 2017: CEO (Reuters)

RBS planning to axe 600 UK jobs in cost-cutting plan – sources (Reuters)

     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.

Is it a recovery yet? (Weekly report, 04-14-16)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The number of Americans who applied for unemployment benefits last week fell by 13,000 to 253,000, matching the lowest mark since the end of the Great Recession and sinking to a level last seen in 1973." (Marketwatch)

SEE LAST WEEK'S POST HERE.

     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.

Wednesday, April 13, 2016

Wednesday roundup (04-13-16)

We’re running out of water, and the world’s powers are very worried (RevealNews)

How negative interest rates take money out of your pocket: Negative Thinking: Income-focused savers pay stiff price for central bankers’ failures by Satyajit Das (Marketwatch)

IMF Warns of Possible ‘Spiral’ of Waning Growth, Escalating Debt (Bloomberg)

France and Spain stuck in deflation (The Financial Times)

The charts that show British households are borrowing hard again: Unsecured household consumer credit is rising at at an annual rate of 9.3 per cent - the fastest since before the financial crisis. (The Independent)

China's leaders are blowing their last chance to avert an economic crisis -- ["While the IMF does not use the term, China is basically in a 'debt-deflation' trap."] by Ambrose Evans-Pritchard (The Telegraph)

When Will the Powers That Be Notice That Japan's Insolvent? (TheStreet)

Retail Sales Unexpectedly Fall as U.S. Consumers Scrimp (Bloomberg)

Five major banks fail bailout test, would need taxpayer money in crisis: Bank of America, JPMorgan Chase, Wells Fargo, others must improve 'living wills' (HousingWire) Some big US banks have 6 months to shape up plans (The Associated Press)

American Apparel Lays Off Hundreds [= More Than 500]: While laying off hundreds of employees, the struggling clothing company reportedly considers outsourcing its manufacturing. (Patch)

     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.

Tuesday, April 12, 2016

Tuesday roundup (04-12-16)

IMF cuts global growth outlook again, warns of political risks (Reuters) Fears of global slowdown as Japan is latest to stutter with debt now estimated at around 250% of the country's income (This is Money) There's no room for mistakes if the global economy is in as much trouble as the IMF thinks (The Telegraph)

IMF says Greek debt 'highly unsustainable', debt relief 'essential' - draft memorandum (Reuters)

Italy's Bank Plan Should Be Given Benefit Of The Doubt But Drastic Overhaul Still Needed (Forbes)

China to post worst quarterly growth in 7 years (CNNMoney)

Bernanke's Former Advisor: "People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned" (ZeroHedge blog)

Nomura to slash up to 1,000 jobs in US, Europe (Nikkei Asian Review)

UC-Berkeley to cut 500 positions in next two years (The Washington Post)

     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.

Monday, April 11, 2016

Monday roundup (04-11-16)

Negative rates could fuel fresh 'boom and bust', IMF warns (The Telegraph)

‘Europe has to change course’: Greece and Portugal unite to lambast EU (The Telegraph)

ECB seeks to mollify Germany after dispute over 'helicopter money' (Reuters) Mario Bothers: Germany Takes Aim at the European Central Bank: Business and political leaders in Germany are increasingly frustrated with the monetary policies of European Central Bank head Mario Draghi. Recently, the confrontation has threatened to become damaging to the euro zone. (Spiegel Online)

Italy Forms $5.7 Billion Fund to End Doubts About Banking System (Bloomberg)

Weak UK industry data set to weigh on economic growth: Crude steel production falls to lowest since December 2008 while manufacturing output drops 1.8% year on year (The Guardian) U.K. Economy May Be Heading for Its Worst Quarter Since 2012 (Bloomberg)

Olivier Blanchard eyes ugly 'end game' for Japan on debt spiral by Ambrose Evans-Pritchard (The Telegraph)

The worrying market denial about Japan (The Hill blogs)

Japan Desperately Needs a Stronger Dollar, China Desperately Wants a Weaker Dollar: The Fed Can't Please Both by Charles Hugh Smith (of two minds blog)

Obama can appoint Merrick Garland to the [United States] Supreme Court if the Senate does nothing (The Washington Post)

Goldman Sachs to pay $5 billion in U.S. Justice Dept mortgage bond pact (Reuters) Goldman Mortgage Settlement Is Much Less Than Meets the Eye (The New York Times blogs)

Marine Harvest to cut 500 jobs in Chile (Marketwatch)

     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.

Sunday, April 10, 2016

Sunday roundup (04-10-16)

Global recovery ‘in danger of stalling’ [The Financial Times via] (CNBC)

Meanwhile In Germany, An Unexpected Ad Appears ["... what this ad does is scream deflation."] (ZeroHedge blog)

Greece Points Finger at IMF for Bailout Delay as Talks Continue (Bloomberg) Tsipras demonizes IMF to rally troops for bailout sacrifices (Reuters) Solution on Greece will be found soon but without debt relief: German finance minister (Reuters)

Spain to ask Brussels for extra year to meet deficit target (Reuters)

Italy govt calls meeting Monday to finalise bank fund plan - sources (Reuters) Italy facing a £4bn bank bailout after country's lenders lose nearly half their stock market value since start of the year (This is Money)

Beijing risks 'ERM-style' currency crisis as deflation persists by Ambrose Evans-Pritchard (The Telegraph)

Sanders wins Wyoming Democratic caucuses, Cruz takes Colorado delegates (FoxNews) Cruz outmaneuvering Trump in behind-the-scenes battles for delegates (The Los Angeles Times)

     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.

Saturday, April 9, 2016

Saturday roundup (04-09-16)

Three Oil Majors Have Debt Ratings Cut by Moody's on Price Rout (Bloomberg)

Puerto Rico Declares Emergency Period for Development Bank (Bloomberg) Puerto Rico governor declares emergency at Government Development Bank (Reuters)

Puerto Rico Rescue Bill Nears Completion in House Committee (The New York Times blogs)

     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.

Friday, April 8, 2016

Friday roundup (04-08-16)

Italy to Miss Previous Debt Target as Growth Forecast Cut (Bloomberg)

Yen's surge against US dollar revives deflation jitters: Japan’s currency has gained 12% against the dollar this year, increasing pressure on the Bank of Japan to take action (The Guardian)

First-quarter economy [in the United States] looks bleaker by the day (CNBC)

Fed To Hold Closed, Unexpected Meeting Under "Expedited Procedures" On Monday To Discuss Rates (ZeroHedge blog)

Wells Fargo to pay $1.2 billion for hiding bad loans before housing crash (CNNMoney)

Why the Banks Should Be Broken Up: Bernie or no Bernie, 'Times' columnist Paul Krugman is wrong about the banks by Matt Taibi (Rolling Stone)

[Connecticut Gov.] Malloy: Up to 2,000 state employee layoffs coming as early as next week (Fox61)

     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.

Thursday, April 7, 2016

Thursday roundup (04-07-16)

Can Matteo Renzi Save Europe from Austerity?: The last best hope of Europe’s anti-austerity forces faces an uncertain future. (The American Prospect)

China’s debt is growing faster than its economy and analysts said there’s no quick fix: Chinese levels of borrowing may be Asia’s greatest economic risk, they said (South China Morning Post)

U.S. readies bank rule on shell companies amid 'Panama Papers' fury (Reuters)

The man who predicted the Great Recession says we're not ready to handle the next downturn (Marketplace)

SocGen warns of ‘tidal wave of corporate default’ [The Financial Times via] (CNBC) [See related Bloomberg stories in yesterday's blog post.]

JPMorgan opposes breakup proposal (USAToday)

U.S. failed to show how MetLife is “too big to fail,” judge says (The Washington Post) MetLife's 'too big to fail' tag is 'arbitrary, capricious': U.S. judge (Reuters)

Nokia Said to Cut as Much as 14% of Workforce [= about 10,000 to 15,000 positions] After Alcatel Deal (Bloomberg) [Adds specificity to yesterday's post mentioning the loss of "thousands" of jobs.]

Chevron cutting 655 Houston jobs amid oil bust (FuelFix blog)

     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.

Is it a recovery yet? (Weekly report, 04-07-16)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The number of Americans who applied for unemployment benefits last week fell by 9,000 to 267,000, keeping initial claims near the lowest level in decades." (Marketwatch)

SEE LAST WEEK'S POST HERE.

     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.

Wednesday, April 6, 2016

Wednesday roundup (04-06-16)




[World's] Biggest Banks to Face Tougher Debt Limits to End Too-Big-to Fail (Bloomberg)

Economy Sets Tone for Polish Rates as Deflation Worst in Decades (Bloomberg)

China's debt explosion threatens financial stability, Fitch warns (The Telegraph)

Millions of students [in the United States] may never repay their student loans: More than 40% of student borrowers aren’t making payments (Marketwatch)

Entitlements eat up almost two-thirds of U. S. taxpayer money (RNN)

Cruz win [in Wisconsin] moves GOP closer to contested convention (CNN)

Sanders wins big in Wisconsin, but barely dents Clinton delegate lead (The Hill)

Soros & Many Hedge Funds Pouring Money into Hillary by Martin Armstrong (Armstrong Eonomics blog)

6 Reasons I'm Worried Derivatives Could Take Down the Economy Again: Savers and investors should be concerned that another round of bank failures could happen anew. (Kiplinger) [Meanwhile] Regulators take softer line on bank capital for derivatives (Reuters)

The Coming Default Wave Is Shaping Up to Be Among Most Painful (Bloomberg) Default Tsunami Brewing (Bloomberg)

Nokia to cut thousands of jobs following Alcatel deal (Reuters)

Fiat Chrysler to cut 1,300 jobs in first layoff since 2009 (CNNMoney)

Spanish union says Santander plans to lay off 1,200 workers (Reuters)

     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.

Tuesday, April 5, 2016

Tuesday roundup (04-05-16)

Lagarde Sees Political Dangers Galore With Global Economy Tepid (Bloomberg)

Europe's major economies mark disappointing end to first quarter (Reuters) Eurozone Economy Weaker Than Indicated in March: Final PMI indicates that first-quarter activity increased at the slowest pace since 2014 (The Wall Street Journal)

Merkel: Write-down of debt for Greece not legally possible (The Associated Press)

Bank of Portugal lowers growth forecast, below government's (Reuters)

Iceland's leader resigns, first casualty of Panama Papers (Reuters)

Panama Papers Leaker: ‘I Want to Make These Crimes Public’: An anonymous source began to expose the finances of the world's most feared and powerful men like Vladimir Putin with a single question: ‘Interested in data?’ (The Daily Beast) What are the Panama Papers? A guide to history's biggest data leak: What is Mossack Fonseca, how big is it, and who uses offshore firms? Key questions about one of the biggest ever data leaks (The Guardian) The Panama Papers: What They’re All About: Here's a basic primer on the global offshore tax haven scandal with some useful links. (Moyers & Company) How Reporters Pulled Off the Panama Papers, the Biggest Leak in Whistleblower History (Wired) The Panama Papers, explained with piggy banks (Youtube)



Offshore corporations - The secret shell game: Offshore corporations have one main purpose - to create anonymity. Recently leaked documents reveal that some of these shell companies, cloaked in secrecy, provide cover for dictators, politicians and tax evaders. (McClatchyDC)



Wall Street bank says U.S. unemployment isn't 5% (CNNMoney)

Sainsbury to Cut Up to 850 Jobs in Training, Night-Shifts (Bloomberg)

FMC to cut 700 Norway jobs (Offshore Engineer)

Paddy Power Betfair to cut 650 jobs as offices close (The Telegraph)

     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.

Monday, April 4, 2016

Monday roundup (04-04-16)

Prosecutors open probes as world's wealthy deny 'Panama Papers' links (Reuters) Panama bombshell spells demise of shadow finance, and privacy by Ambrose Evans-Pritchard (The Telegraph)

IMF says insurers pose risks to the global economy (Marketwatch)

Persistent deflation increases pressure on ECB (The Times of London) ECB prepared to do more if necessary to achieve inflation target (Reuters)

Greece, Creditors Resume Bailout Talks Amid Leak Dispute (The Associated Press)

Bank of England to leave Bank Rate at 0.5 pct until early 2017 (Reuters)

Has a Secret International Deal Been Made to Drive the Price of the US Dollar Down? (Economic Policy Journal)

At Minneapolis Fed forum, controversial ideas emerge for safeguarding structure of U.S. banks: The too-big-to-fail topic produces vigorous debate in first forum. (The Minneapolis Star-Tribune) Regulators seen as exhausted in effort to end too-big-to-fail banks: Experts seek to reenergize effort to rein in biggest banks (Marketwatch)

Why Bernie’s Right About Glass-Steagall: Sanders believes that the repeal of the act in 1999 led to the formation of banks that became "too big to fail" -- and will lead to another crisis without corrective legislation. (Moyers & Company)

Illinois on the Brink of Bankruptcy by Martin Armstrong (Armstrong Economics)

     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.

Sunday, April 3, 2016

Sunday roundup (04-03-16)

IMF chief moves to ease tensions with Greece on $98B bailout (USAToday) IMF chief denies threat to pull out of Greek bailout (Reuters)

     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.

Saturday, April 2, 2016

Saturday roundup (04-02-16)

The World May Have Too Much Food: For the first time in history, more people are obese than underweight. (Bloomberg)

IMF weighing exit from Greek bailout [The Financial Times via] (CNBC) After WikiLeaks Revelation, Greece Asks I.M.F. to Clarify Bailout Plan (The New York Times) Greece demands IMF explanation over leaked debt transcript (Reuters)

IMF concerned UK referendum will interfere with Greek bailout – WikiLeaks: Leak reveals worry that British poll on leaving union could paralyse EU decision-making just as IMF pushing through bailout terms, according to whistleblower (The Press Association)

Hillary Clinton’s Support Among Nonwhite Voters Has Collapsed (The Huffington Post) A close Wisconsin primary could spell future trouble for Clinton (The Washington Post)

In a revealing interview, Trump predicts a ‘massive recession’ but intends to eliminate the national debt in 8 years by Bob Woodward and Robert Costa (The Washington Post)

If Donald Trump Loses Wisconsin To Ted Cruz, Trump May Lose The GOP Nomination (Forbes)

Here's How We Can Break Up the Banks and Avoid Another Economic Disaster: We should think of the financial system as a utility, in the same way that we think of sewage systems and electricity distribution. (Alternet)

     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.

Friday, April 1, 2016

Friday roundup (04-01-16)

10 demographic trends that are shaping the U.S. and the world (Pew Research Center)

Euro zone factory growth stays weak in March despite deep discounting: PMI (Reuters)

UK manufacturers cut jobs and prices amid economic slowdown: Respected Markit/CIPS survey suggests sector recorded one of its weakest performances for three years as exports market toughens (The Guardian)

Families in worse shape as income lags since recession, study says (The Chicago Tribune)

Thousands Could Lose Food Stamps as States Restore Pre-Recession Requirements (The New York Times)

Brazil's largest oil company Petrobras to slash 12,000 jobs (Xinhua)

     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.