Friday, September 30, 2016

Friday roundup (09-30-2016)

Deutsche Bank Troubles Raise Fear of Global Shock (The New York Times blogs) Deutsche Bank's Troubles, Europe's Failures (BloombergView) This Is How Much Liquidity Deutsche Bank Has At This Moment, And What Happens Next (ZeroHedge blog)

Jail Wells Fargo CEO and Chairman John Stumpf!: Stumpf's actions were not merely "unethical" — they were criminal. And in the current system [in the United States], he'll not only get away with it, he'll profit more than handsomely. by Nomi Prins (Moyers & Company 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.

Thursday, September 29, 2016

Thursday roundup (09-29-2016)

The 19 countries with the highest level of government debt (The Business Insider)

European Union is in 'worst period ever,' German minister warns (CNBC)

ECB's Easy-Money Policies Averted a New 'Great Depression,' Draghi Says (Dow Jones Newswires)

Some Deutsche Bank Clients [= about 10 hedge funds] Reduce Collateral on Trades (Bloomberg) Pressure is building for Germany to show it's ready to rescue Deutsche Bank (CNBC) Deutsche Bank -- The Meltdown Crisis by Martin Armstrong (Armstrong Economics blog)

Amid Deutsche Bank woes, rival German lender [Commerzbank] announces a major overhaul [= "a net reduction of 7,300 jobs"] (CNBC) Commerzbank Plans Job Cuts in Biggest Overhaul Since Bailout (Bloomberg)

German bank woes will dash Frankfurt’s great dream (The Telegraph)

[In the United States,] Wells Fargo’s Reaction to Scandal Fails to Satisfy Angry Lawmakers (The New York Times blogs)

Air Berlin to cut 1,200 jobs and halve airline fleet (The Local)

Novo Nordisk to ax 1,000 jobs in cost-cutting drive (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, 09-29-16)

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.)

"Applications for unemployment benefits rose 3,000 to 254,000 in late September, but the low level of initial claims points to a steadily improving labor market in which jobs are the easiest to find in years." (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, September 28, 2016

Wednesday roundup (09-28-2016)

IMF calls for action to defeat ‘deflation trap’ (The Australian Business Review)

Central banks loosen purse strings 200 times in less than two years (Reuters)

Germany's banks are a timebomb. And if they crash, it'll be 2008 all over again, writes ALEX BRUMMER (The Daily Mail) Germany is denying it's preparing to bailout Deutsche Bank (The Business Insider)

QE is here forever, says Bank of England deputy governor (The Telegraph)

Congress moves to avert [a United States] government shutdown after Flint deal struck (The Washington Post)

Congress rejects Obama veto, Saudi September 11 bill becomes law (Reuters) Saudia Arabia to Sell All US Assets as Congress Overrides Obama Veto by Martin Armstrong (Armstrong Economics blog)

Wisconsin Cities Face Billions Of Dollars In Underfunded Retiree Benefits: Milwaukee Journal Sentinel Investigation Finds $6.5 Billion In Unfunded Obligations To Retired Public Workers (Wisconsin Public Radio)

     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, September 27, 2016

Tuesday roundup (09-27-2016)

IMF warns central banks could lose deflation fight (Agence France Presse)

Growing tide of protectionism threatens already weak outlook for global trade (The Washington Post) World Trade Set For Slowest Yearly Growth Since Global Financial Crisis: WTO cuts world trade growth forecast to 1.7% in 2016 (The Wall Street Journal)

Europe risks disintegrating at great human cost, Greece’s Varoufakis says (CNBC) Eurozone risks collapse into prosperous north and stagnant south, warns Varoufakis (The Telegraph)

Deutsche Bank collapse could BURY EU as stocks plunge FURTHER in day two CARNAGE: THE Eurozone's banking system could implode, dragging the euro down with it, if Angela Merkel's government allows Deutsche Bank to fail, experts have warned, as the bank's share price hit new lows in this morning's trading. (The Express)

France unlikely to achieve 2017 deficit target: fiscal watchdog (Reuters)

Finland becomes third euro zone country to record negative 10-year yield [after Germany and The Netherlands] (Reuters)

Greece passes new reforms for fresh batch of bailout aid (Reuters)

Italy cuts growth outlook, hikes deficit, reverses debt pledge (Reuters)

Spain is the 6th Eurozone country to join the 100% debt-to-GDP ratio club: Greece, Italy, Portugal, Cyprus, Belgium, and now Spain (NewEurope)

Saudi chops wage, benefit bill in delicate pursuit of austerity (Reuters)

[In the United States,] Massive Cuts Proposed as Parma [Ohio] City School Board Faces $15-Million Deficit (Cleveland Scene)

IRS to eliminate more than 7,000 jobs as fewer people file paper tax returns (The Washington Post)

[British plumbing and heating supplier] Wolseley to cut 800 jobs and shut 80 branches in the UK (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, September 26, 2016

Monday roundup (09-26-2016)

Global debt climbs towards fresh high as companies and countries keep on borrowing (The Telegraph)

Economic imbalances risk 'destabilising' euro zone: ECB's Draghi (Reuters) ECB's Mario Draghi savaged by MEPs over negative interest rates and 'debt economy': CHIEF of the European Central Bank (ECB) Mario Draghi received a savage dressing down from MEPs over monetary policies today, as tensions over the bloc's flagging economy grow between policymakers. (The Express) Mario Draghi and ECB go to WAR with Germany over how to save crumbling Eurozone: THE European Central Bank (ECB) chief has again clashed with Germany over how to save the ailing eurozone economy. (The Express)

The Deutsche Bank crisis could take Angela Merkel down – and the Euro (The Telegraph) Deutsche Bank shares hit record low on report Merkel won't help the troubled lender (CNBC)

Saudis shore up banks as slow financial crunch worsens by Ambrose Evans-Pritchard (The Telegraph) Saudi Arabia’s Monarch Scraps Bonuses, Cuts Minister Salaries (Bloomberg)

Rogoff: China is the biggest threat to the global economy right now (CNBC)

Sheila Bair Called the Financial Crisis. Here’s Her New Nightmare: The former FDIC chief went up against Wall Street in 2006. To her, the nation’s $1.4 trillion student debt is the disaster around the corner. (Bloomberg)

Commerzbank to cut 9,000 jobs in restructuring -Handelsblatt (Reuters)

Hundreds laid off at Chicago-based Motorola Mobility (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.

Sunday, September 25, 2016

Sunday roundup (09-25-2016)

Why financial security should be addressed in the first presidential debate [in the United States tomorrow night]: Trump and Clinton’s plans to prevent or respond to another financial crisis are an integral part of national security. But they probably haven’t even considered that (The Guardian)

Why It’s Getting Tougher to Sue Your Bank (DepositAccunts) Consumer Banking (The Pew Charitable Trusts)

     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, September 24, 2016

Saturday roundup (09-24-2016)




     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, September 23, 2016

Friday roundup (09-23-2016)

Euro zone business growth hits 20-month low, Germany loses momentum (CNBC) Eurozone slows as German growth falls behind France (The Telegraph)

"Deutsche Bank May Ultimately Need A State Bailout" - Handelsblatt (ZeroHedge blog)

Greece needs substantial debt relief, surplus targets unrealistic: IMF (Reuters)

The Bank of England is sounding the alarm on Chinese debt (The Business Insider)

[In the United States,] 'We're beyond crisis': Oregon's public pension problem brings official to tears (KVAL)

Mulberry's Allied Bank closed by Arkansas Banking Department (The Associated Press) Allied Bank of Mulberry AR had a troubled assets ratio of 213.5 percent. (BankTracker)

VW's MAN to cut 1,400 jobs at diesel-engine unit (Reuters)

SolarWorld will lay off 500 in Germany (The Portland Business Journal 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.

Thursday, September 22, 2016

Thursday roundup (09-22-2016)

Regulators expect Monte dei Paschi to ask Italy for help - sources (Reuters)

The Implications Of The Italian Banking Crisis Could Be Disastrous (Forbes) COULD ITALY’S BANKING PROBLEMS SPARK A EUROZONE CRISIS? (International Banker) Italian banks will 'unravel' Europe: The "failed" Italian banking system, not Brexit, will be the trigger that finally "unravels" the European Union, says Westpac's chief economist. (InvestorDaily of Australia)

IMF says Portugal's recovery is running out of steam (The Associated Press) IMF says Portugal bailout only "qualified success", leaving unfinished business (Reuters)

Juncker issues WARNING SHOT to Spain: There will be NO MORE funds if debt isn't controlled: SPAIN has been warned by Brussels it could be refused a huge amount of financial support if it fails to get its budget deficit under control. (The Express)

China told to combat debt problem or face banking crisis: Ratings agency Fitch has added its voice to mounting concerns about financial instability in the Chinese economy. (CityAM) Fitch reveals the $2trillion black hole in China's economy that heralds a lost decade by Ambrose Evans-Pritchard (The Telegraph)

Commerzbank eyes thousands of job cuts in strategy revamp - sources [with one saying 5,000 cuts are "entirely plausible"] (Reuters)

Ericsson to end Swedish production and cut 3,000 jobs, reports say: Mobile telecoms firm will halt 140 years of manufacturing in home country as part of cost cuts, according to Swedish media (The Guardian)

Bayer-Monsanto deal 'danger for our food': French chefs (The Local)

     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, 09-22-16)

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 U.S. unemployment-insurance benefits fell by 8,000 to 252,000 in the week that ended Sept. 17, the Labor Department reported." (Marketwatch)

U.S. Jobless Claims Fall Last Week to Lowest Level Since July: Number only slightly above a four-decade low touched in April (The Wall Street Journal)

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, September 21, 2016

Wednesday roundup (09-21-2016)

OECD cuts world growth outlook amid weak advanced economies (Kyodo)

OECD: Negative rates threaten financial stability (Marketwatch)

UN fears third leg of the global financial crisis, with epic debt defaults by Ambrose Evans-Pritchard (The Telegraph)

WILL THE EUROPEAN UNION SURVIVE ANGELA MERKEL’S POLITICAL DEMISE?: Since 2010, Merkel has been the main force for keeping the European project together. (Newsweek)

Meet the riskiest bank in the world [= Deutsche Bank, according to the FDIC] (The Business Insider) Deutsche Bank Extends Losses as Analysts See Capital Threats [Sept. 19] (Bloomberg)

BOJ overhauls policy focus, sets target for government bond yields (Reuters)

Unlike the Fed, the BoC’s hands are tied by a paradox of household debt (The Globe and Mail of Toronto)

Federal Reserve holds interest rates steady [in the United States] (CBSMoneywatch) Larry Summers Begs Janet Yellen Not to Raise Interest Rates: In a tweet storm. (Fortune)

New Report Outlines Higher Education’s $2.7 Billion ‘Debt Bomb’ (Time)

Comptroller: NY student loan debt hits $82B (Blogs of The Times-Union of Albany, New York)

'Trump Is a Problem for the Whole World': With Europe falling ever-deeper into crisis, European Parliament President Martin Schulz is warning of the further advance of right-wing populism. In an interview, he also says he fears the possibility of a President Trump. (Spiegel Online)

     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, September 20, 2016

Tuesday roundup (09-20-2016)

Six companies are about to merge into the biggest farm-business oligopoly in history [= mergers are pending of six companies into three: mergers of Bayer & Monsanto, of Dow Chemical & DuPont, and of China National Chemical Corp. & Syngenta] (Quartz)

German producer prices slip into deflation in August (EconoTimes)

Italy is a 'systemic risk' and could become investors' new obsession (The Business Insider) Inside Italy's circle of NPL [non-performing loan] hell (EuroMoney)

Austerity Only Benefits Germany and Destroys Europe, [Italian Prime Minister] Renzi Says (Bloomberg)

CATASTROPHIC Portuguese economy hits new low as toxic combination to BRING DOWN eurozone: PORTUGAL'S economy is coming closer to a catastrophic derailment which could trigger a eurozone meltdown, amid a toxic combination of rising bankruptcies, falling numbers of new businesses and high Government debt. (The Express)

[United States Senator] Elizabeth Warren Hammers Wells Fargo CEO: ‘You Should Be Criminally Investigated’: John Stumpf admitted no senior bank executives have been held accountable in the scam. (The Huffington Post) Senator Elizabeth Warren questions Wells Fargo CEO John Stumpf at Banking Committee Hearing (Youtube)



Spain’s Banco Popular to Cut Up to 3,000 Jobs, Close Branches (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, September 19, 2016

Monday roundup (09-19-2016)

Quote of the Day:

"Where were the internal controls? This stuff was not sophisticated. Why weren’t there red flags? Why weren’t they catching this?" -- Sheila Bair, former head of the Federal Deposit Insurance Corp. (The Washington Post)




Europe Is Facing a Fiscal Meltdown (ValueWalk)

Italy PM tells Bundesbank chief to fix Germany's bank problems (Reuters)

BIS warns China banks risk crisis within three years (Reuters) By this measure, China’s banking sector could implode within 3 years: China’s credit-to-GDP gap is three times over the threshold (Marketwatch)

Engie to cut 1,150 French jobs, LNG unit making losses - L'Expansion (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.

Sunday, September 18, 2016

Sunday roundup (09-18-2016)

BIS flashes red alert for a banking crisis in China by Ambrose Evans-Pritchard (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.

Saturday, September 17, 2016

Saturday roundup (09-17-2016)

Someone Is Learning How to Take Down the Internet [Sept. 13] (Schneier on Security)

     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, September 16, 2016

Friday roundup (09-16-2016)

Elliott Management founder Singer: Low rates, radical monetary policy have not led to sustainable growth [in the United States] (CNBC)

Grocery bills noticeably cheaper (Milwaukee Journal Sentinel)

Raymond to cut 10,000 jobs in three years as robots to replace workers [in India] (FirstPost)

     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, September 15, 2016

Thursday roundup (09-15-2016)

Bank of England keeps rates unchanged paving path for Fed inaction next week (USAToday)

Spain's economy is on the edge of a cliff (The Business Insider)

Canada’s household debt is now bigger than its GDP, for the first time (The Financial Post) Almost a million Canadians couldn't handle a 1-point interest rate rise, TransUnion says: 1 in 6 Canadians would owe an extra $50 a month if rates rose by just a quarter percentage point (The Canadian Broadcasting Corporation) Why Canada’s borrowing binge will end badly (The Globe and Mail of Toronto)

U.S. retail sales, factory output slump; third-quarter growth forecast cut (Reuters)

Warren: Next Administration Should Probe, Maybe Jail Wall Street Bankers: In trying to reopen the investigation, she’s telegraphing her new Senate tactics—and sending a message to Hillary Clinton. (Bloomberg) Warren Pushes for Justice Dept. to Investigate, Possibly Jail, Those Responsible for ’08 Crash (Mediaite) Can Senator Warren Jumpstart Financial Crisis Prosecutions? by Barry Ritholtz (The Big Picture blog)

IRS cutting 1,800 jobs in Greater Cincinnati, moving operations (Cincinnati Business Courier)

     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, 09-15-16)

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 average of new jobless claims over the past month edged up by 500 to 260,750, 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, September 14, 2016

Wednesday roundup (09-14-2016)

Bond yields are surging despite deflation, and that is dangerous by Ambrose Evans-Pritchard (The Telegraph) [versus] The world’s safest investment just got more dangerous: Treasury bond ‘madness’ will end badly for yield-hungry investors (Marketwatch)

Eurozone Industrial Output in Big July Fall (The Associated Press)

Don’t look now: Donald Trump has all the momentum in the 2016 race [for President of the United States] (The Washington Post)

How 'Zombie' Oil Companies Stay Alive in Life-or-Death Debt Markets: 'Distressed exchanges' are on the rise and contributing to a jump in defaults, especially in the energy sector. (Bloomberg)

Moody's: Sears' and Kmart's shutdown is imminent (The Business Insider)

     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, September 13, 2016

Tuesday roundup (09-13-2016)

Oil investment crashes to 60-year low, incubating next energy shock by Ambrose Evans-Pritchard (The Telegraph)

Italy to cut growth forecasts, economy minister says (Reuters)

Italy Is the Mother Of All Systemic Threats (Forbes)

[In the United States,] Wells Fargo exec who headed unit involved in scandal due $125 million in retirement (FoxNews) Wells Fargo fired 5,300 workers for improper sales push. The executive in charge is retiring with $125 million. (The Washington Post blogs)

U.S. credit card balances may soon top $1 trillion (CBSMoneywatch) Surge in Credit Card Debt Raises Red Flags for U.S. Economy: Americans have been charging up credit card debt at a pace not seen since the period leading up to the 2008 recession. And this is raising red flags. (TheStreet)

‘Superbug’ scourge spreads as U.S. fails to track rising human toll (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.

Monday, September 12, 2016

Monday roundup (09-12-2016)

ECB Proposals Aim to Clear Europe’s Bad Debt Mountain: $1 trillion of bad debt weighing on bank stocks and hindering economic recovery (The Wall Street Journal)

EU to investigate Barroso over Goldman Sachs job: EU officials have said they will ask the former European Commission head to give details of his contract with the firm. Barroso caused outrage by joining the bank, which some say helped cause Europe's financial crisis. (Deutsche Welle)

Bailout inspectors back in Greece as reforms delayed (The Associated Press)

Portugal: We'll do all we can to avoid a second bailout (CNBC)

EU soft touch on Portugal deficit risks credibility: Finnish FinMin (Reuters)

[In the United States, President] Obama, Hill leaders meet ahead of federal funding deadline [in bid to avoid a government shutdown] (The Associated Press)

Slow growth forecast weighs on Fed rate hike decision (CNBC)

[Dutch bank] ABN Amro: to cut up to 1,375 jobs as part of cost-saving measures (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.

Sunday, September 11, 2016

Sunday roundup (09-11-2016)

5 Ways the Global Economy Could Slide into Another Great Depression (The National Interest)

Greece Presses Creditors for Better Debt Repayment Terms (The Associated Press)

'Brexit must not be an excuse' to cut [UK] jobs, warn unions (The BBC)

No negative rates for UK, signals Bank chief - but 'tipping point' for cash on the horizon (The Telegraph)

Where have the jobs gone? Australians grapple with less work, low pay (Reuters)

US Corporations Have Lots Of Debt And Not Much Cash: CLSA (ValueWalk)

     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, September 10, 2016

Saturday roundup (09-10-2016)

EU’s Austerity Programs Are ‘History’ Now, Malta’s Scicluna Says (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.

Friday, September 9, 2016

Friday roundup (09-09-2016)

3 Banks That Have Received Huge Fines Related to the 2008 Financial Crisis: Since the 2008 financial crisis, violations in leading banks have led to huge costs and raised concerns about the banking system's integrity. (TheStreet)

Negative Interest Rates and the War on Cash by Nicole Foss: Part 1 (The Automatic Earth blog) Part 2 (The Automatic Earth blog) Part 3 (The Automatic Earth blog) Part 4 (The Automatic Earth blog)

Facing slow to no growth, EU's poor nations plot next move (CNBC)

Finland's Rehn: EU should stick to deficit rules (Reuters)

Eurozone woes continue as German exports plunge and French industry deteriorates (The Telegraph)

EU crisis looms as Greece, Spain and Portugal pose TRIPLE THREAT for crumbling eurozone: EUROZONE finance ministers are meeting in a desperate attempt to avert three separate economic disasters looming in Greece, Spain and Portugal. (The Express)

Greece Urged to Speed up Reforms to Get More Bailout Cash (The Associated Press) Greece’s slow bailout progress set to dominate Eurogroup talks (CNBC)

[Meanwhile in Greece,] Deflation persists for a 42nd month [Reuters via] (eKathimerini)

Zimbabwe Plans to Cut 25,000 State Jobs to Trim Wage Bill (Bloomberg) Zimbabwe to cut 25,000 civil service jobs (The BBC)

[In United States District Court in Detroit,] Volkswagen engineer pleads guilty in U.S. diesel emissions probe (Reuters)

The explosion of student debt could be 'a drag on the financial well-being of the nation' (The Business Insider)

Louisiana governor asks Congress for $2 billion for flood recovery (The Associated Press)

     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, September 8, 2016

Thursday roundup (09-08-2016)

ECB surprises by failing to extend QE deadline; cuts euro zone growth forecasts (CNBC) ECB's Mario Draghi has run out of magic as deflation closes in by Ambrose Evans-Pritchard (The Telegraph)

EU's ZOMBIE banks: ECB is destroying Europe's finance hubs, warns leading investment bank: EUROPEAN banks are slipping into a terrifying zombie state of decline thanks to the European Central Bank (ECB), a leading investment bank has warned. (The Express)

[Italy's] Monte dei Paschi CEO to be replaced as cash call looms (Reuters)

BOJ's Nakaso says won't rule out deepening negative rates (Reuters)

Why So Few Economists Are Prepared to Say Recession Risks Are Fading [in the United States]: Historically, recessions have disproportionately struck near elections (The Wall Street Journal blogs)

Food deflation woes hit Kroger in new 'grocery price war' (CNBC) U.S. Food Prices See Longest Stretch of Deflation in 50 Years: Farmers and grocery store operators feel the pain (ElliotWave)

5,300 Wells Fargo employees fired over 2 million phony accounts (CNNMoney) [In addition,] Wells Fargo to pay $185 million settlement for 'outrageous' sales culture (The Los Angeles Times)

Dell Technologies to Cut at Least 2,000 Jobs After EMC Deal (Bloomberg)

Can Illinois go Bankrupt or just Default? 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, 09-08-16)

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 4,000 to a two-month low of 259,000, reflecting the unwillingness of businesses to part with workers in a tight labor market despite slower economic growth." (Marketwatch)

Jobless Claims in U.S. Decline to Lowest Level in Seven Weeks (Bloomberg)

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, September 7, 2016

Wednesday roundup (09-07-2016)

Central Banks Around the Word are Dovish (The Big Picture blog)

Will the next [United States] president face a full-blown eurozone crisis? (The Hill blogs)

Banks’ Bad Loans Declared Systemic Challenge for European Banks (Bloomberg) ECB to unveil guidelines for banks to work down bad debt: Nouy (Reuters)

ECB is set to extend QE well into next year as it struggles to kickstart inflation (CNBC)

China’s Big Debt Worries George Soros. Should It Worry You? (The New York Times blogs)

Tens of Thousands of Jobs Go as China’s Biggest Banks Cut Costs (Bloomberg)

US recession jitters stoke fears of impotent Fed and fiscal paralysis by Ambrose Evans-Pritchard (The Telegraph)

"It's Worse Than The Great Depression" - One In Six Prime-Aged Men Has No Job (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.

Tuesday, September 6, 2016

Tuesday roundup (09-06-2016)

EU finance ministers, central bankers will consider a euro zone crisis fund (Reuters)

Greece crisis could topple Brussels project, top ratings agency warns: GREECE'S financial crisis could erupt once more in an economic cataclysm which would lead to the collapse of the eurozone, a top ratings agency has warned today. (The Express)

Interfering Brussels now ORDERS Spain to sort out public deficits or else...: EUROPEAN Union bureaucrats have stepped in on battered Spain AGAIN and ordered them to sort out their public deficit. (The Express)

[United States Republican Presidential Candidate Donald] Trump’s History of Corruption by Barry Ritholtz (The Big Picture blog)

Mercedes-Benz cuts over 1,500 Brazil jobs with layoffs, buyouts (Reuters)

Marks & Spencer to cut hundreds of jobs [= 525] at London HQ: Staff reduction will be achieved through redundancies, non-replacement of leavers and cutting contractors (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.

Monday, September 5, 2016

Monday roundup (09-05-2016)

Quote of the Day:

"Structural reforms are vital at this point to prevent a real economic depression on a global scale." -- Economic forecaster Martin Armstrong (Armstrong Economics blog)

ECB on 1 trillion euros and counting with government debt buys (Reuters)

Eurozone Economy 'Losing Momentum' as Germany Falters (The Associated Press)

Fears for Germany's economy as service sector drops to lowest level in THREE YEARS: GERMANY'S economy has flashed further warning signs of disaster, after its service sector plunged to its lowest level in more than three years last month. (The Express)

Greece faces standoff over bailout funds after Athens fails to impose reforms: Eurozone ministers may refuse to release further funds as only two out of 15 changes that were condition of rescue package have been implemented (The Guardian)

Greek banks must cut bad debt faster to aid economy (Reuters)

Expect weakened growth in Spain as political deadlock drags on: Moody’s (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.

Sunday, September 4, 2016

Sunday roundup (09-04-2016)

Emerging markets on track to set sovereign debt record [The Financial Times via] (CNBC)

EU will not release more bailout money for Greece this month: paper (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, September 3, 2016

Saturday roundup (09-03-2016)

Greece may win short-term debt relief soon if it implements reforms: EU bailout fund (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.

Friday, September 2, 2016

Friday roundup (09-02-2016)

UBS: We are witnessing the end of the credit cycle, and a crash is coming (The Business Insider)

Preventing deflation is central task, ECB's Nowotny says (Reuters)

Italy says determined to cut debt despite growth setback (Reuters)

Third Election Looms for Spain as Rajoy Loses in Confidence Vote (Bloomberg)

Slower U.S. payrolls growth dims September Fed rate hike prospects (Reuters) U.S. economy may need much higher interest rates: Fed's Lacker (Reuters)

Brazil’s Petrobras Says 11,704 Employees Accept Voluntary Layoff: The state-run [oil] company is cutting costs amid lower oil prices and a corruption scandal (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, September 1, 2016

Thursday roundup (09-01-2016)

IMF's Lagarde says likely to cut [global] growth outlook as trade wanes (Reuters)

Eurozone Unemployment Is Still A Disaster - Time To Get Rid Of The Euro, Finally (Forbes)

Italy PM Renzi says tax cuts necessary as growth stutters (Reuters)

An Italian financial crisis poses huge threat to global economy (The Hill blogs)

Factory activity shrinks [in the United States] for 1st time since Feb. (USAToday)

Walmart to cut 7,000 back-office accounting, invoicing jobs (USAToday)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Is it a recovery yet? (Weekly report, 09-01-16)

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 jobless claims rose 2,000 to 263,000 at the end of August and have hovered in the 260,000 range for six straight weeks." (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.