‘STORM IS COMING’ Top economist warns financial disaster LOOMS as banks are NOT prepared

John Vickers

Sir John Vickers has warned about the safety of UK banks

 

A SEVERE financial storm is going to hit and the Bank of England hasn’t done enough to prevent a repeat of the last financial crisis, Sir John Vickers has warned.

Britain’s banks and financial systems are still too fragile, which could lead to another disaster in the face of a big downturn, blasted the economist who led the Independent Commission on Banking.

Sir John told ITV News: “A storm is going to come, we can’t predict when, but you want to be ready for it. Continue reading

Recession May Loom for Next U.S. President No Matter Who That Is

As mentioned four times already (here, here, here and here) before anyone picked up on it, the next President will be in over his or her head. In reality, it’s the need to reverse a U.S. decline in power.

 

Talk about a poisoned chalice. No matter who is elected to the White House in November, the next president will probably face a recession.

The 83-month-old expansion is already the fourth-longest in more than 150 years and starting to show some signs of aging as corporate profits peak and wage pressures build. It also remains vulnerable to a shock because growth has been so feeble, averaging just about 2 percent since the last downturn ended in June 2009.

If the next president is not going to have a recession, it will be a U.S. record,” said Gad Levanon, chief economist for North America at the Conference Board in New York. “The longest expansion we ever had was 10 years,” beginning in 1991. Continue reading

Plunging prices could force a third of U.S. oil firms into bankruptcy

Saudi Arabia’s economic war on America’s oil industry will soon start to show its effect. Declining prices mean less profit. Less profit means operating costs, mainly wages, are unsustainable. Unustainable operating costs mean layoffs and bankruptcies. This leads to collapse of the oil industry.

 

Drillers from Houston to Riyadh won’t quit pumping despite the oil glut.

 

Three major investment banks — Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc.   — now expect the price of oil to crash through the $30 threshold and into $20 territory in short order as a result of China’s slowdown, the U.S. dollar’s appreciation and the fact that drillers from Houston to Riyadh won’t quit pumping despite the oil glut. Continue reading

Spain’s economy plunges into recession

Spain’s jobs-scarce economy plunged back into recession in the first quarter of 2012 as employment slumped even further, the Bank of Spain said Monday.

Barely two years after emerging from the last downturn, Spain slid into recession again with two consecutive quarters of economic contraction, the central bank said in a report.

Full article: Spain’s economy plunges into recession (Channel New Asia)