The creation of a US “bad bank” as a depository for toxic financial assets, could cost as much as $4 trillion - - the equivalent of nearly 1/3 of US gross domestic product.

Davos World Economic Forum 2009: Jean-Claude Trichet warned financial markets on Thursday to stop putting pressure on banks to hold more capital, insisting that such proposals were exacerbating the global recession, in particular the risk of falling international capital flows to emerging markets.

Greed Incorporated: On Thursday, President Barack Obama said it was irresponsible and shameful for Wall Street bankers to be paid huge bonuses at a time when the American public is dealing with economic hardship.

Bill Gross, manager of the world’s biggest bond fund at PIMCO - - Pacific Investment Management Co., said in June 2008, that a Barack Obama administration may have no other choice than to produce the first $1 trillion US budget deficit. In his latest monthly investment newsletter, he says  it’s easy to end “this deflationary delevering and mini-depression” — stop the ongoing decline in asset prices.

Markets news on stocks, currencies and oil.

US sales of new one-family houses in December 2008 were at a seasonally adjusted annual rate of 331,000 - - the lowest mark since 412,000 in 1982 - - according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 14.7 percent below the revised November of 388,000 and is 44.8 percent below the December 2007 estimate of 600,000. Meanwhile, US workers filing claims for jobless benefits extending more than one week, has jumped to a record high.

Irish Economy 2009: The Central Bank today published its first bulletin of 2009. The Bulletin indicates that against the background of exceptionally unfavourable global economic and financial conditions and a marked weakening in domestic demand, the Irish economy is facing into a second consecutive year of contraction and adjustment. The bank forecasts that GNP (gross national product) will fall by 4.75% in 2009.

German unemployment rose again in January and the International Labour Organisation (ILO) says the global recession could result in more than 50 million job losses

The value of Irish merchandise exports fell 8% in year to November, while the value of imports plunged 28%, according to the CSO.

Eurozone retail sales continued to fall sharply in January, dropping for the eighth month running. At 44.0, compared to 41.4 in December, the latest Bloomberg Eurozone Retail Purchasing Managers’ Index (PMI) signals a further easing in the month-on-month rate of sales decline from the all-time record pace seen last November.