Friday, September 7, 2012

Friday roundup (09-07-12)

Quote of the Day:

"Unless Europe stops the recession and offers people in the peripheral countries some light at the end of the tunnel - not in five years but within 12 months - the political backlash will be overwhleming, with strikes, riots and weak governments collapsing." -- Nouriel Roubini, head of Roubini Global Economics (The Telegraph)

Eurozone pulls back from the brink of catastrophe -- again (The Los Angeles Times blogs)

Cheap ECB cash could prove to be the worst form of bailout (The Telegraph blogs)

EU’s van Rompuy, in Athens, urges compliance with reform and austerity pledges (The Associated Press)

Portugal’s government heaps more austerity on families to cut debt amid recession (The Associated Press)

Debt-hit Italy sells off castles: Palaces on the Grand Canal in Venice and in the historic centre of Rome, medieval castles and even lighthouses are on the market (The Times of London)

Ireland Said Likely to Miss October Target to Ease Bank Debt (Bloomberg)

French President Must Cut Deficit, but How? (The New York Times)

U.S. Jobless Rate Drops for the Worst of All Reasons (Bloomberg) Forget four years ago: We're worse off than in 2011: The jobs numbers show the economy is headed in the wrong direction. (CNNMoney) New Jobs at 96,000, Missing Expectations; Rate Hits 8.1% (CNBC) Young adults drop out of the job market (CNNMoney) A New Old Story For Jobs: Slow Growth (The Capital Spectator blog) "Overall this was another weak report." (Calculated Risk blog) "This is the kind of report that I would expect to see a few months before the onset of recession." (the bonddad blog)

Jay Leno takes a 50% pay cut (CNNMoney)

Bank failure in Minnesota brings 2012 total to 41 (The Associated Press) First Commercial Bank, Minnesota, Closed By Regulators (Problem Bank List) First Commercial Bank of Bloomington MN had a troubled assets ratio of 296.9%. (BankTracker)

     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 an energy shock may be coming much closer in time than is generally imagined.

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