The Mess That Greenspan Made - Part 32

Tuesday Morning Links

The Greek Austerity Myth – Project Syndicate
Greek defense minister has Plan B if EU rigid on deal – Reuters
Ukraine deal ‘a last chance’ to avoid war, Hollande says – France24
Ukrainian forces launch offensive near Mariupol, east Ukraine – Reuters
SwissLeaks: How  HSBC Helped 100,000 Rich Clients Dodge Taxes – Vice News
JPMorgan Worker Choked Wife to Death Before Suicide, Police Say – Bloomberg
How Wall Street, In Broad Daylight, Took Over The US Government – Zero Hedge
Report: Hong Kong’s MyCoin Disappears With Up To $387 Million – CoinDesk
Fourth Turning – The Shadow of Crisis Has Not Yet Passed – Burning Platform
China’s Massive Pile of Debt Keeps Rising – Bloomberg
When Is It Time for Mindful Austerity? – WSJ
Dr. Yellen’s First Test – Pension Partners

Stock markets edge up but Greece standoff looms – AP
U.S. oil output ‘party’ to last to 2020: IEA – Reuters
IEA sees end to oil rout, but warns of blow to Canada – Globe & Mail
U.S. Investors Pull Out of Stock ETFs, Rush Into Bonds, Commodities – Barron’s
How Do Hedge Funds Keep Winning Despite Losing? – WSJ
Dalio’s Bridgewater Fund Said to Rise 8.3% in January – Bloomberg
Gold dips as firmer dollar offsets euro zone concerns – Reuters
Where Are Gold Prices Headed? Watch Silver – All Star Charts
Second Thoughts On US Official Gold Reserves Audits – BullionStar
The Keys to the Gold Vaults at the New York Fed – BullionStar

Will Faster Wage Growth Raise Inflation? – Capital Spectator
The Difference Between Jobs and ‘Jobs’ – Alhambra Partners
China January inflation hits five-year low – Reuters
China executes Ferrari-loving billionaire ‘gangster’ – Telegraph
Venezuela’s Rating Lowered by S&P on Economic Outlook – Bloomberg
The Canadian housing market – in charts – Sober Look
Negative equity, millennials, employment still chilling housing market – Housing Wire
Central Banks Will Monetize More Than 100% Of Global Sovereign Debt – Zero Hedge
Fed’s George: Wrong to Rely on Regulation Alone to Thwart Bubbles – WSJ
On The Fed Credibility Gap – Fed Watch


Debt and (Not Much) Deleveraging

This graphic from a new study at the McKinsey Global Institute makes the case that, despite the commonly accepted belief that the world has been deleveraging since the last credit bubble burst and the financial crisis/Great Recession followed, that’s really not the case.

Also see Doug Noland’s take on this important subject at his new blog and two related items that are referenced there in Bloomberg’s “A World Overflowing With Debt” and the Financial Times’ “Debt Mountains Spark Fears of Another Crisis“, all timely reminders that further expansion of credit and debt is not likely to result in a lasting solution to a crisis that was caused by a reckless expansion of credit and debt.

Monday Morning Links

Greece Heads For Showdown With EU – Bloomberg
Cameron plans contingencies for ‘Grexit’ – Telegraph
Greenspan says Greece will have to leave eurozone – Guardian
HSBC bank ‘helped clients dodge millions in tax’ – BBC
German-French Push Yields Ukraine Summit Plan With Putin – Bloomberg
Anxiety and Interest Rates: How Uncertainty Is Weighing on Us – NY Times
Now’s not the time to raise interest rates – Summers, Washington Post
Jobs Report: More Rearview Mirror Than Window to the Future – Morningstar
Stock Buybacks Are Killing the American Economy – Atlantic
Inside the Strange Fight Over Mark Zuckerberg’s Bedroom – Bloomberg
“What Happened to Deleveraging?” – Credit Bubble Bulletin
How to Live a Happier Financial Life – WSJ
Inside a Chinese bitcoin mine –

World stocks lower on poor China trade, Greek turmoil – AP
Oil steadies near $58 as U.S. rig count offsets Chinese data – Reuters
OPEC Cuts Forecast for U.S. Oil-Supply Growth After Price Rout – Bloomberg
The hidden risks of adopting a cosy approach to investment – Telegraph
Expect a Decade of 1.7% Returns from a Conventional Asset Mix – Hussman Funds
Gold gains on weak dollar and shares, still near 3-week low – Reuters
36% of Swiss gold exports to China went direct to mainland – Mineweb
Total SGE Withdrawals 255t In January, Up 4 % y/y – BullionStar
Why Gold Fell 2.5 pct On Friday – GoldSilverWorlds

A Contrary Opinion On The US Employment Report – GaveKal
The Recovery Is Finally Happening for Ordinary Americans – New Republic
Global watchdog warns advanced economies slowing reforms – AP
World record debt of $199trn could drag economies into another crisis – RT News
China’s imports drop 20% explaining PBoC action; China watchers clueless – Sober Look
Germany Posting Record Surplus Gives Fodder to Critics – Bloomberg
Japan logs record-low current account surplus in 2014 – CNA
Redfin Agent Network Sees a ‘Roaring’ Start to 2015 – Builder Online
U.S. Banks Say Soaring Dollar Puts Them at Disadvantage – WSJ
Rand Paul’s Know-Nothing Fed Bashing – Bloomberg


Boomtown, USA

We haven’t heard much about the fallout from what appears to be an energy boom in the process of going bust about 500 miles Northwest of here in Williston, North Dakota, but that’s not surprising. These things seem to take a while to pan out.

One thing seems pretty likely if oil prices stay anywhere near current levels for any length of time – we’ll no longer have any trouble finding a hotel room when passing through the area.

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