Sunday, August 12, 2012

Sunday roundup (08-12-12)

Five years on, the Great Recession is turning into a life sentence: Five years into the Long Slump it almost seems as if we are back to square one. (The Telegraph)

The hemline economy: Maxi length skirts are a sure sign of bad times, and now they are as long as the 1929 Great Depression (The Daily Mail)

Euro-Area Crisis Has ‘No Obvious End In Sight,’ BOE’s King Says (Bloomberg)

Berlin threatens to block Greek rescue if it fails to comply with austerity terms (This is Money) Germany ready to block Greek aid if country misses targets: Germany will block any new aid to ailing Greece if Athens does not fully comply with the terms of previous rescue packages, even if other countries support unlocking funds, a senior lawmaker said Sunday. (Agence France Presse)

Complete Absurdity in Greece: ECB Prints Euros to Give to Greece to Make Interest Payments to ECB (Mish's Global Economic Trend Analysis blog)

Finance Minister says Italy to overshoot deficit goal - paper (Reuters)

How 'Everyday Low Prices' [in the US] Are Costing Americans Their Jobs (Daily Finance)

Neil Barofsky Lauds Barney, Blasts Dodd-Frank: Former TARP cop Neil Barofsky explains why he thinks the big banks should be broken up. (PBS Newshour)

     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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