Friday, August 31, 2012

Friday roundup (08-31-12)

Eurozone jobless goes past 18 million (The Independent)

UN warns of 'catastrophic' rise in European youth unemployment if Greece left eurozone: The UN's International Labour Organisation (ILO) has warned of a "catastrophic" rise in unemployment, especially among the young, if debt-wracked Greece were to leave the eurozone or if the bloc were to split. (The Telegraph)

'The Most Perturbing Aspect of the Current Slowdown Is That the Weakness Is So Widespread' (Financial Armageddon blog) Summertime blues: The slowdown is spreading around the world (The Economist)

Draghi plan under threat amid EU split: Pressure is mounting on the European Central Bank to water down emergency measures to prop up Spain and Italy, after reports that the chief of Germany’s Bundesbank threatened to quit in protest at the plan. (The Telegraph)

Merkel asks Italy to delay bailout request: report (Marketwatch)

Spain creates ‘bad bank’ to manage toxic assets (The Associated Press)

Deflation Deepens As Japan Contraction Risk Intensifies: Economy (Bloomberg) Bank Of Japan Out Of Ammunition For Deflation Fight, Motani Says (Bloomberg)

"Restoring Capitalism To The Capitalists" -- ["Recent speech by the Governor of the Bank of Canada Mark Carney to the Canadian Auto Workers .. the Bank of Canada is Canada's central bank like the Federal Reserve in the U.S. .. emphasizes building resilient financial institutions, ending too-big-to-fail, moving from shadow banking to market-based finance, what needs to be done for a sound economy & sound money to foster globally competitive industries ... 5* - a must read"] (Cliff Küle's Notes blog)

Defending Fed, Bernanke signals new economic stimulus: In apparent move to build public support, the Fed chief notes stagnation of the labor market and the risks of lingering high unemployment. (The Los Angeles Times) Fed Chairman Makes Case, in Strong Terms, for New Action (The New York Times) Bernanke: With unemployment ‘a grave concern,’ Fed will do more if conditions don’t improve (The Washington Post) Bernanke Makes Case For Further Stimulus To Help Jobless (Bloomberg) Bernanke Clears the way for QE3 in September (Calculated Risk blog) Two more reviews of Bernanke's Speech: Weak Labor Market "a grave concern" (Calculated Risk blog)

The Federal Reserve: From Central Bank to Central Planner: The Fed's 'nontraditional' actions have crossed a bright line into fiscal policy and the direct allocation of credit. (The Wall Street Journal)

Recession In U.S. Likely If Congress Doesn’t Act, Feldstein Says (Bloomberg)

Low wage jobs are dominating the U.S. recovery (The Washington Post blogs) Most new jobs in economic recovery are low-paying, study finds: Lower-paying jobs, with median hourly wages from $7.69 to $13.83, made up about 58% of the job growth from the end of the recession in late 2009 through early 2012. (The Los Angeles Times) Majority of New Jobs Pay Low Wages, Study Finds (The New York Times) The Low-Wage Recovery and Growing Inequality [the report] (National Employment Law Project)

Governor Brown Admits the Obvious "We Have Lived Beyond Our Means"; Brown Agrees to Vast Overhaul of the California's Pension System; Unions Howl Over Obvious Truth (Mish's Global Economic Trend Analysis blog)

NY Federal Reserve: Short Selling Bans Don’t Work (Cliff Küle's Notes blog)

Plague of Broken Contracts Frays Cotton Market (The Wall Street Journal)

JPMorgan faces sea of trouble resolving "Whale" probe (Reuters)

The Gold Standard Goes Mainstream: In the ferment within today's Republican Party, there's a growing realization that America's system of fiat money is part of the economic problem. (The Wall Street Journal)

Should the U.S. Return to the Gold Standard?: Matthew O'Brien, associate editor at The Atlantic, and James Rickards, senior managing director at Tangent Capital Partners, debate whether the U.S. should return to the gold standard. Bloomberg's Deirdre Bolton moderates. (Bloomberg)

Reprise: Simon Johnson On the Quiet Coup d'Etat in the Anglo-American Financial System (Jesse's Café Américain blog)

Greyerz: Investors Assets To Be Stolen In The Coming Collapse (King World News)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

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