Monday, May 29, 2017

Tag: Crisis

Summers Warns of Financial-Crisis Risk From Trump Economic Plans

Former U.S. Treasury Secretary Lawrence Summers attacked the policy proposals of Donald Trump on several fronts, saying the president-elect’s plans for deregulation were setting the stage for the next financial crisis. “The deregulation in some areas like finance is hugely dangerous,” Summers said Sunday in an interview on Fox News Channel....

Everyone in Europe Needs to Take a Deep, Calming Breath

We don't yet know how the president-elect will behave in office. Meanwhile, the present state of hysteria could make things worse. “The sky is falling!” exclaimed Chicken Little, in the well-known folk tale, after an acorn fell on the poor fowl’s head, leading to mass hysteria over an imminent apocalypse...

Global Trumpism: Why Trump’s Victory Was 30 Years in the Making and Why It...

Trump's victory was predictable, and was predicted, but not by looking at polls. Polling has taken a beating recently having failed to predict the victory of David Cameron's Conservative Party in the British general elections, then Brexit, and now the election of Donald Trump. One can argue about what’s...

Trump Team Promises To Dismantle Dodd-Frank Bank Regulations

During his presidential campaign, Republican Donald Trump said he would "get rid of" Dodd-Frank — the sweeping legislation passed in 2010 to address problems underlying the 2008-2009 financial crisis. Many Republicans hate the 2,300-page law, saying it is layered with far too many regulations. But Democrats say it provides valuable...

James Rickards: The Petro Dollar Is Dead, Dollar Devaluation, Pensions Lost, World Currency

James Rickards is the Editor of Strategic Intelligence, a financial newsletter, and Director of The James Rickards Project, an inquiry into the complex dynamics of geopolitics + global capital. He is the author of The New Case for Gold (April 2016), and two New York Times best sellers, The...
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Meet the Renegades: Michael Hudson

With every major financial recovery since the second World War beginning in a place of greater debt than the one before it, how could we not have foreseen the financial crisis of 2008? In this episode of Meet the Renegades, economics professor and author, Michael Hudson argues we did. How could...

Five Reasons You Should Blame The Economics Discipline For Today’s Problems

This ended up being a pretty long piece so, for the “tl;dr” people, here is a quick summary: We are experiencing deep economic problems and it is the fault of the economics discipline. Their macro theories suck. But, there is no mechanism forcing it to alter its models when they...

Euro house of cards to collapse, warns ECB prophet

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned. "One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in...

Part-Time Jobs Soar By 430,000 As Multiple Jobholders Surge To August 2008 Levels

While today's headline jobs print was somewhat disappointing, with the Establishment Survey missing the expected print of 175K, and growing by 156K, it was offset by a far higher 354K jump in the household survey which offset last month's weakness. But while the quantitative headline aspect is open to...

The Obama Administration’s Suspension of Syria Talks With Russia Is the Most Dangerous Development

The collapse of talks takes the United States one step closer to an unnecessarily deadly “military solution” to the Syria crisis. This afternoon the State Department announced that the Obama administration is suspending bilateral talks with Russia regarding the war in Syria. The statement by State Department spokesman John Kirby...

Some Deutsche Bank Clients Unable To Access Cash Due To IT Outage

While it now seems that Friday's rumor of a substantially reduced Deutsche Bank settlement with the DOJ, which sent the stock price soaring from all time lows, was false following a FAZ report that CEO John Cryan has not yet begun the renegotiation process, and in the "next few...

According To JPMorgan, This Is The Biggest Risk Facing Deutsche Bank At This Point

Deutsche Bank uncertainties were added to concerns about BoJ tapering spooking global equity markets over the past week. Widespread press reports about Deutsche Bank clients and counterparties reducing their financial exposure to the bank, including their derivatives exposures, alarmed market participants. At the same time, JPMorgan warns, the amount borrowed...

Why is Deutsche Bank now the biggest worry in the financial world?

What’s going on with the banking industry? Since the credit crunch in 2008, banks have been struggling to adapt to their new environment. Low interest rates coupled with meagre yields in the financial markets mean banks can generate fewer profits from the deposits they collect, the loans they dole out,...

The Deutsche Bank crisis could take Angela Merkel down – and the Euro

There are some words that make such an unlikely pairing that we find it hard to put them together. Italy and efficiency, for example. Or Bake Off and Channel 4. And 'Germany' and 'banking crisis' is another one. Our image of German banks, and the German economy, as completely rock...

Banks to Need Billions More Capital in Tests Under Fed Plan

Wall Street would have to come up with billions of dollars in additional capital in a proposed revamp of the Federal Reserve's annual stress tests that could also scrap some provisions that lenders have criticized. As the Fed has signaled for months, it is considering changes that would raise the...

UN fears third leg of the global financial crisis – with prospect of epic...

The third leg of the world's intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history. It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal...

Get ready for the mother of all stock market corrections once central banks cease...

Global stock and bond markets have been all over the place of late. Rarely have investors been so lacking in conviction. Confusion as to future direction reigns, and with good reason after the spectacular returns of recent years. For how much longer can stock markets keep delivering? Is there another...

China facing full-blown banking crisis, world’s top financial watchdog warns

China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog. A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese...

The End of the G-20: Has the Group Outlived Its Purpose?

Over Labor Day weekend, the leaders of the G-20 countries gathered in Hangzhou, China, for their annual summit. Their goal this year: save the good name of globalization, which has recently taken a beating. In the wake of Brexit, the U.S. Republican presidential candidacy of Donald Trump, the rise...

Why a forgotten 1930s critique of capitalism is back in fashion

Seventy years ago the thinkers and writers of the Frankfurt School warned of capitalism's drift towards a cultural apocalypse. Has it already happened, but we’ve been too uncritical to notice? In Jonathan Franzen’s 2001 novel The Corrections, Chip Lambert liquidates his library. He sells off his collection of Frankfurt School...

The Weird New Normal of Negative Interest Rates

The United States, Germany, and other economic powerhouses haven't learned the dire lessons of Japan's lost decades. In 1998, when I was a reporter in Tokyo, an event happened that economists once thought impossible. Japan was at the height of its banking crisis, and as panic swelled, short-term market interest...

The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning To Burst

Do you remember the subprime mortgage meltdown from the last financial crisis? Well, this time around we are facing a subprime auto loan meltdown. In recent years, auto lenders have become more and more aggressive, and they have been increasingly willing to lend money to people that should not be...

Retailers Seek U.S. Help With Shipping Crisis

Rates soar as Hanjin Shipping’s bankruptcy filing strands goods, causes confusion at ports. U.S. retailers, bracing for a blow as they stock up for the crucial holiday sales season, asked the government to step in and help resolve a growing crisis caused by the near-collapse of South Korea’s Hanjin Shipping...

A calamity is unfolding in Yemen and it is time the world woke up

Homes flattened by air strikes. Boys killed by discarded cluster bombs. Babies dying in incubators. This is Yemen in 2016. MEE sent Peter Oborne to survey the devastation. SANAA - The humanitarian calamity in Yemen entered a terrifying new phase of horror this month as air strikes on the capital...

The new TTIP? Meet TISA, the secret privatisation pact that poses a threat to...

Government insists 'public services are under no threat whatsoever from this deal'. An international trade deal being negotiated in secret is a “turbo-charged privatisation pact” that poses a threat to democratic sovereignty and “the very concept of public services”, campaigners have warned. But this is not TTIP – the international agreement it...

Venezuela’s Maduro Accuses US of Imperialist Attack Against Latin American Leftists

Recent turmoil faced by progressive governments in Brazil, Bolivia, and Venezuela point to "an imperialist attack against all," Maduro says. Venezuela's leftist president Nicolas Maduro told a crowd of supporters Saturday that the turmoil of recent months in progressive Latin American countries are the result of "an imperialist attack on...

Years of Fed Missteps Fueled Disillusion With the Economy and Washington

Once-revered central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions. In the past decade Federal Reserve officials have been flummoxed by a housing bubble that cratered the financial system, a long stretch of slow growth they failed...

It’s Time for China Analysts to Stop Talking Past One Another

What exactly is going on in the People's Republic? Even with good data, experts can't agree. On August 12, the International Monetary Fund (IMF) issued its annual report card on China's economy and gave the country mixed grades, finding that its “economic transition will continue to be complex, challenging, and...

Fed knows policy doesn’t work anymore but it won’t admit it: Strategist

The policies of global central banks received another bashing Thursday with a London-based investment strategist launching a stinging analysis of the U.S. Federal Reserve. Minutes released late Wednesday from the Fed's latest policy meeting showed some voting Federal Reserve policymakers expected a further U.S. interest rate increase will be required...

The problem with Europe is the euro

In this extract from his new book, the Nobel prize-winning economist argues that if the euro is not radically rethought, Europe could be condemned to decades of broken dreams. Europe, the source of the Enlightenment, the birthplace of modern science, is in crisis. This part of the world, which hosted...

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