Monday, August 6, 2012

Monday roundup (08-06-12)


"This Is Not A Good Situation" [Bloomberg video interview with Mohamed El-Erian of PIMCO] (Cliff Küle's Notes blog) Pimco’s El-Erian Says World In Serious Slowdown [Aug. 2] (Bloomberg)

Germany and Italy near blows over euro: German politicians from across the spectrum have reacted furiously to warnings by Italy’s Mario Monti that Bundestag control over EU debt policies threatens to bring about the “disintegration” of the European project. (The Telegraph) Don't let euro zone debate turn nasty: German foreign min (Reuters)

Italy PM Monti calls confidence vote on spending cuts (Reuters)

Bernanke: despite recovery, many struggling (Reuters)

Meet The Bankers Having Second Thoughts About Too-Big-To-Fail (The Huffington Post blog)

Knight Avoids Collapse With $400 Million Lifeline (The Associated Press) Knight Capital Type ‘Glitch’ Will Happen Again: Author (CNBC)

[Derbyshire] County council [in the UK] set to cut 3,300 jobs (This is Nottingham)

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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