Wednesday, August 31, 2016

Wednesday roundup (08-31-2016)

Mark Carney urges policymakers to 'finish the job' of ending too-big-to-fail (The Telegraph) Dishonest bankers threaten new financial crisis says Bank of England Governor Mark Carney: ‘The incidence of financial sector misconduct has risen to a level that has the potential to create systemic risks by undermining trust in both financial institutions and markets,’ Mr Carney has told the G20 (The Independent)

Blame oil: Nigeria slumps into recession, Norway stalls (CNNMoney)

Eurozone core inflation fall raises prospect of ECB stimulus measures: Underlying inflation in single currency area was lower year on year in July, despite action taken by bank over past 18 months (The Guardian)

Now a FIFTH of youths in Eurozone are jobless and more than half of under-25s in Greece are without work (The Daily Mail)

Low rates taking a toll on euro zone banks: ECB's Nouy (Reuters)

Slowing German inflation puts pressure on ECB (Reuters)

Europe after Angela Merkel (American Enterprise Institute)

How our greedy banks are sacrificing savers: Interest rates slashed by MORE than Bank of England (The Daily Mail)

All four big Chinese banks report rising bad loans (Agence France Presse)

[United States] Jobs report seen as key to Fed rate decision (USAToday) Why the Fed probably won't like the jobs report Friday: August has disappointed the market nine of the last 12 years and is usually followed by substantial revisions. (CNBC)

[Illinois Gov.] Rauner loses $400 million vote on teacher pension fund issue (The Chicago Tribune) It's Time to Turn Out the Lights in Illinois 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.

Tuesday, August 30, 2016

Tuesday roundup (08-30-2016)

Hoarding Cash [Around the Globe] Prelude to the Crash and Burn by Martin Armstrong (Armstrong Economics blog)

Euro zone monthly economic sentiment falls more than expected (Reuters)

EU staff petition attacks Barroso over Goldman Sachs job: More than 75,000 people sign petition denouncing former president of European commission and calling for him to lose his EU pension (The Guardian) Goldman Sachs is at it Again by Martin Armstrong (Armstrong Economics blog)

Why A Record Number Of College Grads [In The United States] Are Working Minimum Wage Jobs (ZeroHedge blog)

Tunisia's state-owned carrier to cut 1,000 jobs (AfricaNews)

     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, August 29, 2016

Monday roundup (08-29-2016)

Negative interest rates could become the norm in downturns, warns ECB (The Telegraph)

BOJ Needs Massive Shock & Awe, $2 Trillion Investor Says (Bloomberg)

The Federal Reserve is debating how to fight the next [United States] recession (The Washington Post blogs)

Virginia faces $1.5 billion budget deficit; what that means for our region (WSLS)

     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, August 28, 2016

Sunday roundup (08-28-2016)

Global central bankers, stuck at zero, unite in plea for help from governments (Reuters) Central Bankers Hear Plea: Turn Focus to Government Spending (The New York Times)

Bill Gross: Yellen's Economy "May Never Walk Normally Again, This Is Not Capitalism" (ZeroHedge 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.

Saturday, August 27, 2016

Saturday roundup (08-27-2016)

Greece PM says EU sleepwalking toward cliff, wants debt relief by end 2016 (Reuters)

August 2016: Unofficial Problem Bank list declines to 184 Institutions (Calculated Risk blog)

Hundreds [= about 840] laid off at Ashley Furniture factory/warehouse in Colton (The Inland Valley Daily Bulletin of San Bernadino County, California)

     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, August 26, 2016

Friday roundup (08-26-2016)

Viktor Shvets: ‘The Private Sector Will Never Recover’: The Macquarie strategist's brutal assessment of the world economy is fascinating, but not for the faint of heart (The Epoch Times)

Japan's deflationary spiral worsens as 'Abenomics' falters: Consumer prices fell by 0.5% in July – the biggest drop for more than three years – as markets await US hints on rate rise (The Guardian)

There Are Real Reasons to Bring Back Glass-Steagall [in the United States] by Marcus Stanley, policy director for Americans for Financial Reform (The American Banker)

     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, August 25, 2016

Thursday roundup (08-25-2016)

Real World Shows Economics Has a Deflation Problem (Bloomberg)

The head of Germany’s largest bank says negative rates are ‘fatal’: Cryan says negative interest-rate policy could have ‘fatal consequences’ (Marketwatch)

Here Are the Signs That Deutsche Bank Is in Big Trouble: Investors should worry when government ministers and executives insist everything is OK. (TheStreet)

Italy Quake Seen Affecting Economic Confidence as Growth Stalled (Bloomberg) Italy quake toll hits 250 as rescuers search flattened towns (Reuters)

Japan remains entrenched in deflation as core inflation falls to a 3-year low (The Business Insider)

[In the United States,] States face a $1 trillion pension shortfall (CNNMoney)

     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, 08-25-16)

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 1,000 to 261,000 and remained near postrecession lows, indicating a healthy labor market in which few people are losing their jobs." (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, August 24, 2016

Wednesday roundup (08-24-2016)

French support for the EU project is crumbling on the Left and Right by Ambrose Evans-Pritchard (The Telegraph) It’s Time to Start Worrying About a Frexit (Fortune)

EU, Portugal reach deal to shore up nation’s largest bank: $3 billion injection hoped to help ease Portugal’s troubled banking sector [The Wall Street Journal via] (Marketwatch)

Why Portugal could be Europe’s next economic disaster: More woes for Europe this summer—Portugal at risk of downgrade (Marketwatch)

The hidden risk to the economy in corporate balance sheets [in the United States] (The Associated Press)

Top 25 Corporate Pension Plans Alone Are Underfunded By Over $225 Billion (ZeroHedge blog)

Illinois governor's office warns of crippling pension payment hike (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, August 23, 2016

Tuesday roundup (08-23-2016)

Europe on the brink of COLLAPSE as 'divorce' is needed to prevent economic doom: THE European Union is on the brink of imploding, destroying the Euro and causing economic doom, according to a Nobel Prize winning economist. (The Express) The euro has destroyed the EU and led directly to Brexit (The Telegraph)

[In the United States,] Fed Admits Another $4 Trillion In QE Will Be Needed To Offset An "Economic Shock" (ZeroHedge blog)

Multiple donors to Clinton Foundation met with her while at State Department (FoxNews) More than half the non-government people Clinton met with at the State Department were Clinton Foundation donors (The Associated Press) Now Hillary has a big Clinton Foundation problem, too (The Washington Post)

Voters Don’t Trust Donald Trump On Any Of These Major Issues: He’s the most distrusted Republican candidate in recent history when it comes to policy. (The Huffington Post)

Nobel prize winner Stiglitz calls TPP 'outrageous' (CNNMoney)

     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, August 22, 2016

Monday roundup (08-22-2016)

'Nobody believes in anything anymore': Why Greece's economic crisis is not over (CNBC)

Italexit: Is the Eurozone’s Third Largest Member on the Way Out? (The Fiscal Times) FINANCIAL WARNING: Italy will CRASH the eurozone if nation can’t take on more debt: ITALY's financial crisis could bring down the entire eurozone unless the nation’s crumbling economy is allowed to rack up more debt. (The Express)

More than 1.5 million UK households in extreme debt, says TUC report: Britain in the Red study finds that people are struggling to make repayments as wages have fallen since financial crisis (The Guardian)

China caught in 'dead money' trap as central bank pleads for fiscal stimulus by Ambrose Evans-Pritchard (The Telegraph)

$1.3 trillion in student loan debt is crippling retail sales growth [in the United States] (CNBC)

New Emails Show Top Clinton Aide Huma Abedin Setting Up Meetings with Major Foundation Donors (Breitbart) Emails reveal how foundation donors got access to Clinton and her close aides at State Dept. (The Washington Post) Clinton Foundation executive left 148 phone messages for Hillary Clinton's top aide (FoxNews)

Busting The Banksters—-The Case For Super Glass-Steagall, Part 1 by David Stockman (David Stockman's Contra Corner 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.

Sunday, August 21, 2016

Sunday roundup (08-21-2016)

Show of European unity: Merkel, Hollande, Renzi meet to discuss gameplan (Reuters)

Germany to tell people to stockpile food and water in case of attacks: FAS (Reuters)

Mission Impossible Looming for Italy’s 2016 Economic Growth Goal (Bloomberg)

Canada's inflation rate slows; retail sales post surprise decline [Bloomberg News via] (The Globe and Mail of Toronto)

I'm a Bernie backer and I refuse to support Hillary [Clinton for President of the United States] (The Hill 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.

Saturday, August 20, 2016

Saturday roundup (08-20-2016)

Walmart’s Out-of-Control Crime Problem Is Driving Police Crazy: The retailer’s aggressive cost cutting has unintended consequences. (Bloomberg)

The Woodbury Banking Company Closed by Regulators (Problem Bank List blog) [as posted here yesterday]

     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, August 19, 2016

Friday roundup (08-19-2016)

Central bankers are doing something that hasn't happened in 5,000 years — and drastically changing the world economy (The Business Insider)

Italian Banks Continue to Lend to Stagnant Companies as Debt Pile Mounts (The New York Times blogs)

Bank of Ireland to charge for placing cash on deposit: Bank which is 14% owned by State to impose unprecedented levy on larger customers (The Irish Times)

[In the UK,] RBS’ biggest trading customers face negative rates (The Telegraph)

Japan's economic woes deepen as manufacturers' mood hits three-year low (Reuters)

27 years of economic pain for most Americans (CBSMoneywatch)

Trump campaign chairman Paul Manafort resigns (The Washington Post) Inside the fall of Paul Manafort: Donald Trump’s campaign chairman thought he could weather the scrutiny of his lucrative foreign political consulting. He was wrong. (Politico)

Louisiana floods slam struggling state economy (CNNMoney)

Louisiana flood victims praise Donald Trump for visiting damaged areas (The Los Angeles Times)

The $6 trillion public pension hole that we’re all going to have to pay for: Why your state’s public pension plan is in a much bigger hole than you already fear (Marketwatch)

Bank in Woodbury [in Georgia] fails Friday (The Atlanta Journal-Constitution) The Woodbury Banking Company of Woodbury GA had a troubled assets ratio of 296.4 percent. (BankTracker)

     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, August 18, 2016

Thursday roundup (08-18-2016)

World’s Biggest Banks Still Pose Too-Big-to-Fail Risk, FSB Says (Bloomberg)

Italian Banks Continue to Lend to Stagnant Companies as Debt Pile Mounts (The New York Times blogs)

The wealthy [in the United States] have nearly healed from recession. The poor haven’t even started. (The Washington Post)

The National Debt is Costing You Big Time (FoxBusiness)

Louisiana flooding is worst disaster since Sandy, but people aren’t talking about it (USAToday) Louisiana floods: One of the worst US disasters in recent years (The BBC)

     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, 08-18-16)

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 people who applied for unemployment benefits last week fell by 4,000 to 262,000 to mark a one-month low, a sign the labor market remained healthy in late summer." (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, August 17, 2016

Wednesday roundup (08-17-2016)

Europe grocery markets grows at slowest rate on record: Report (CNBC)

[In the United States,] Obamacare is unsustainable — the backbone could collapse, expert warns (CNBC)

Obamacare Is a Money-Loser for Insurers, Who Are Giving Up: With almost $2 billion in losses this year, big insurance companies are pulling out of the health-care program. (Bloomberg)

Trump shakes up campaign, demotes top adviser (The Washington Post)  Donald Trump’s Latest Campaign Shake-Up Proves He Has No Intention of Being Less Trump-Like (Slate) Donald Trump’s hire of Breitbart News chief is a middle finger to the GOP establishment (The Washington Post) This Man Is the Most Dangerous Political Operative in America: Steve Bannon runs the new vast right-wing conspiracy—and he wants to take down both Hillary Clinton and Jeb Bush. [10/8/15] (Bloomberg) [Bannon of Breitbart is the "writer and producer of [the documentary film] Clinton Cash"] [Marketwired via] (Yahoo!) STEPHEN BANNON, TRUMP’S NEW C.E.O., HINTS AT HIS MASTER PLAN: Can the man behind Breitbart—a Harvard M.B.A. who worked at Goldman Sachs and made a killing off of Seinfeld—save Trump? And at what cost? (Vanity Fair)

Live updates: Devastating Blue Cut fire in Cajon Pass consumes homes at rapid rate, burning out of control (The Los Angeles Times)

Cisco to cut 5,500 jobs in shift from switches to software (Reuters)

Ola slashes around 700 jobs, shuts down TaxiForSure business (Press Trust of India)

     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, August 16, 2016

Tuesday roundup (08-16-2016)

Quotes of the Day:

"Just like the phantom economy is bigger than the real economy, just like the black market for derivatives is bigger than the visible market for derivatives, this off-balance-sheet debt [in companies] is much bigger than their on-balance sheet debt, so it's become inverted. We live in a world where people are buying bonds for capital gains and buying stocks for income. That’s a complete repudiation of everything we've known about economics for 200 years, and an inversion of how things work, and will lead inextricably to devastation. ... As I told Dave Blanchflower years ago, the monetary solutions to the credit crisis by creating more debt and credit was CAUSING, not fighting, deflation. I've been proven right." -- Max Kaiser, host of The Kaiser Report (Russia Today)

"Central banks remain in thrall to the idea that credit-fueled growth is healthy for the global economy. In fact, our research highlights that monetary policy easing has thus far contributed to increased financial risk, with the growth of corporate borrowing far outpacing that of the global economy.” ,” S&P Global Ratings analysts (Marketwatch)

Global central banks dump U.S. debt at record pace [in "a sign of pockets of weakness in the global economy"] (CNNMoney)

Banks across Europe are considering taking a drastic step [= physically storing cash in vaults] to avoid negative rates (The Business Insider)

‘Something is VERY broken’: Deutsche Bank at DANGER level that could SMASH markets: GERMANY'S biggest bank is in more trouble than people even think and could drag down some of Europe's biggest lenders to trigger a market meltdown, according to a hedge fund manager who is betting against the firm. (The Express) Deutsche Bank ADMITS it is preparing for market crash as fears over bail out grow: GERMANY'S largest bank has ADMITTED it is in "financial repression mode" as it desperately scrambles to implement financial buffers to prevent collapse. (The Express)

Vicenza: dark heart of Italy's banking crisis where locals have lost millions: Collapse of BPV has left citizens with nothing and the ramifications could damage the whole of Italy and the eurozone [July 26] (The Guardian)

[In the United States:] At least 11 killed, 40,000 homes damaged by historic Louisiana flooding (The Chicago Tribune) Louisiana’s 1,000-year floods inundated 80,000 homes and businesses: 4 trillion gallons of water. 20,000 rescues. Worst Louisiana flooding since Katrina. (Ars Technica)

     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, August 15, 2016

Monday roundup (08-15-2016)

U.S. Said to Uncover Evidence of Criminal Acts in [German carmaker] VW Probe: Justice Department hasn’t decided on specific charges; settlement talks under way with car maker (The Wall Street Journal)

GREEK NIGHTMARE: Athens' crippled economy could DESTROY the Eurozone and SPARK GREXIT: GREECE'S troubled economy remains crippled with its citizens paying the price - one year on from the financial meltdown which pushed the eurozone to the brink. (The Express)

Auto Lending: Last Week Tonight with John Oliver (HBO) [some vulgar language] (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.

Sunday, August 14, 2016

Sunday roundup (08-14-2016)

Italy seeks new deal to scrap EU austerity as its economy stalls: Italian minister says country will seek to break an EU cap on government debt (The Independent)

Consumer spending is key to avoiding a UK recession: This week’s retail sales report from the ONS will show what’s happened to high street spending since the Brexit vote (The Guardian)

How Much Does [Billionaire United States Republican Presidential Nominee] Donald Trump Pay in Taxes? It Could Be Zero (The New York 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, August 13, 2016

Saturday roundup (08-13-2016)

Billionaires [around the world] are holding $1.7 trillion in cash (CNBC)

A year after the crisis was declared over, Greece is still spiralling down: The historic third bailout awarded to Athens after weeks of brinkmanship last year was supposed to have secured its future in the EU. But little has changed (The Observer)

There's a £400 billion problem lurking in Britain's future — and the Bank of England is making it worse (The Business Insider)

More adult Americans live with their parents and grandparents: Multigenerational households have reached an all-time high (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.

Friday, August 12, 2016

Friday roundup (08-12-2016)

Eurozone Second-Quarter GDP Growth Halves, as Expected, to 0.3%: Better-than-forecast German data was offset by a surprise stagnation in Italy, leaving the overall figures unchanged from a July 29 estimate. (The Street)

To escape a global debt trap [exacerbated by the repeal of Glass-Stegall via Sarbanes Oxley], the UK must reach out to the world (The Telegraph)

Construction is in recession as UK economy weakens (The Telegraph)

Italy: stuck in low growth; rising debt (The Financial Times) Italy's National Debt Hits Record High, Reaches Some $2.5 Trillion (Sputnik) Slowing growth lays bare Italy PM Renzi's challenges (Reuters)

IMF tells China: Fix your debt problem now (CNNMoney) IMF says China's credit growth is unsustainable (Reuters) China economic growth may slow to 5.9 per cent in 2020: IMF report: Rising corporate debt a sizable drag on China’s economy (The Associated Press)

An Unsolvable Math Problem: Public Pensions [in the United States] Are Underfunded By As Much As $8 Trillion (ZeroHedge)

     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, August 11, 2016

Thursday roundup (08-11-2016)

Euro zone economy outlook tepid, ECB near its limit: Reuters poll (Reuters) IMF analysts urge ECB to focus on QE rather than negative rates: U.K. gilt yields slip below zero (Marketwatch)

German economy expected to slow down in second quarter (CNBC)

Negative Rates for the People Arrive as German Bank Gives In (Bloomberg)

You May Be Broke and Not Know It: One in seven U.S. households has a negative net worth, as student loans and credit cards plunge a diverse group of people—including those with good jobs—into the red. (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, 08-11-16)

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 people filing for unemployment benefits declined 1,000 to a seasonally adjusted 266,000 in the August 6 week, the Labor Department said Thursday." (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, August 10, 2016

Wednesday roundup (08-10-2016)

REVEALED: Desperate EU bosses splurge €1TRILLION on bonds to prop up ailing eurozone: THE European Central Bank (ECB) has splurged almost €1trillion on bonds in the last 18 months in a desperate bid to prop up the ailing eurozone. (The Express)

Study: Brexit will hit German economy harder than rest of eurozone: Uncertainty about Brexit fallout will harm German companies more than those in the eurozone overall. (Politico)

An epic Middle East heat wave could be global warming’s hellish curtain-raiser (The Washington Post)

SunPower drops 30% amid layoffs [of 1,200 workers], power plant struggles (USAToday) SunPower CEO joins the $1 salary club to boost investor confidence (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.

Tuesday, August 9, 2016

Tuesday roundup (08-09-2016)

'Euro was flawed at birth and destined to COLLAPSE…Eurozone must DITCH it NOW to survive': THE eurozone was flawed at birth and is destined to collapse unless huge changes are made to its single currency, according to a Nobel-Prize winning economist [= Joseph Stiglitz, in new book]. (The Express)

EU waives budget deficit fines for Spain and Portugal (The BBC)

Bank of England easing bonanza may add pressure for more ECB action (CNBC)

U.S. productivity falls for third consecutive quarter (Reuters) Why Did Productivity Fall? Look To The Price of Oil and Gas: Falling energy prices have resulted in a dramatic decline in mining jobs in the U.S. (The Wall Street Journal blogs)

Several U.S. states unprepared for a recession: S&P (Reuters)

Wall Street bankers don't like Trump's policies and plans: Top bankers and campaign financiers were caught off guard by recent Trump statements. (CNBC)

SunPower to cut [about 1,200] jobs, posts quarterly loss (Reuters)

About 600 Optimum Cable jobs to be cut by November (News12)

     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, August 8, 2016

Monday roundup (08-08-2016)

In an ominous sign, Italy has suddenly stopped shopping: The chart shows that retail growth has been in a bad way for a while [The Business Insider via] (The Independent)

     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, August 7, 2016

Sunday roundup (08-07-2016)

We’re in a Low-Growth World. How Did We Get Here? (The New York 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, August 6, 2016

Saturday roundup (08-06-2016)

‘We’ve had ENOUGH Merkel’ Rest of Europe gangs up on Germany over crippling EU austerity: ANGELA Merkel cut an increasingly isolated figure in Europe tonight as the rest of the continent ganged up on Germany over its imposition of crippling austerity. (The Express)

     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, August 5, 2016

Friday roundup (08-05-2016)

Monte Paschi Clean-Up Would Still Leave Bank in Danger Zone (Bloomberg)

PwC must face $1 billion MF Global malpractice lawsuit: U.S. judge (Reuters)

Trump Names Wall Street And Real Estate Titans As Economic Advisers (National Public Radio) Trump unveils all-male economic advisory team (Politico) Donald Trump’s new team of billionaire advisers could threaten his populist message (The Washington Post blogs)

Trump, the Bad, Bad Businessman (The New York Times)

CPS lays off more than 500 teachers, another 500 school-based workers [but most expected to be hired elsewhere] (The Chicago Tribune)

     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, August 4, 2016

Thursday roundup (08-04-2016)

Central Banks Pile on the Deflation, Killing It for Everyone (TheStreet)

Is Deutsche Bank Kaputt? (Cato Institute blogs)

Bank of England Cuts Key Interest Rate to New Low: Central bank to buy government and corporate bonds in bid to stimulate economy after Brexit vote (The Wall Street Journal)

Is Japan's fiscal stimulus really something other countries should follow? (The Hill blogs)

Food deflation [in the United States] good for consumers, but pinching grocers (CNBC)

AB InBev to cut up to 575 UK jobs in SABMiller takeover (The BBC)

     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, 08-04-16)

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 people who applied for unemployment benefits last week rose by 3,000 to 269,000, marking the highest level since the end of June." (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, August 3, 2016

Wednesday roundup (08-03-2016)

Quote of the Day: "The EU is making the same mistakes over and over and over again. They’re not demanding that the banks be recapitalized as they should be, and allowing things to get worse by enabling lenders to keep zombie loans they should have dumped years ago." -- Viral Acharya, a professor at NYU’s Stern School of Business (Fortune)

Euro zone business growth picks up slightly but still muted (Reuters)

UniCredit capital drop adds to Italy's bank troubles (Reuters)

BoE set to cut rates as survey flags sharpest UK downturn since 2009 (Reuters) Interest rate cut is a 'foregone conclusion' say experts as the UK faces a 'mild recession' after key economic sectors slowed sharply (This is Money) Bank of England expected to launch post-Brexit stimulus package: U.K. economic research estimates 50-50 chance of recession within next 18 months (The Associated Press)

IMF urges Japan to coordinate fiscal stimulus with further BOJ easing (Reuters)

[In the United States, Boston's] MBTA Considering Layoffs To Help Close Huge Budget Deficit [of $100 Million] (CBSBoston)

These toxins in our food almost certainly shouldn't be there: Sometimes our food lies to us. Is it really safe to eat? Is it even what’s listed on the packet? A lab in Belfast is one of best places in the world to find out. (The BBC)

     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, August 2, 2016

Tuesday roundup (08-02-2016)

Big Spending Makes a Comeback While Austerity Starts to Fade (Bloomberg)

Satyajit Das Slams Policymaker Ignorance: "QE-Forever Cycle" Means Catastrophe Is Inevitable (ZeroHedge blog)

Spain's Prime Minister Rajoy warns of consequences of ongoing political deadlock: Spain's acting Prime Minister Mariano Rajoy warned that the country may be forced to hold a third round of elections within a year. He accused his Socialist rival of refusing to cooperate in forming a government. (Deutsche Welle)

Prices keep falling as [UK] stores get trapped in discount war (The Times of London) Retail prices still falling [in Britain] although deflation is decelerating (AOL)

     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, August 1, 2016

Monday roundup (08-01-2016)

Debt is holding back the global economic recovery, say central bankers Dudley, Rajan and Zeti (CNBC)

'Lop-sided' euro zone factory growth slowed in July: PMI (Reuters)

Construction spending [in the United States] falls to one-year low in June (Reuters)

Kennametal to cut 1,000 jobs, cut global costs [The Wall Street Journal via] (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.