Monday, September 17, 2012

Monday roundup (09-17-12)

IMF: Coordination With EU on Bailouts at Times 'Challenging' (The Wall Street Journal)

European Banks: Too Big To Fail And Too Big To Save (Seeking Alpha blog)

Europe Banks Fail to Cut as Draghi Loans Defer Deleverage (Bloomberg)

EU Considers Splitting Up Major Banks: EU Commissioner Michel Barnier has asked experts to examine the possibility of splitting up major European banks to avoid future bailouts at taxpayers' expense. But even less radical intervention in the banking sector could have drastic consequences for the industry, and its powerful lobby is resisting any such change. (Spiegel Online)

Bailout doubts push Spanish yields over 6 pct (Reuters)

Spanish Banks Bleeding Cash Cloud Bailout Debate: Euro Credit (Bloomberg)

Political dangers stalk Portugal bailout effort (Reuters)

Berlusconi Tells Giornale EU Debt-Cut Targets Are Impossible (Bloomberg)

Face It: 2013 Is Gonna Be a Bummer [in the US] (Bloomberg)

Rep. Marcy Kaptur: Reinstate the Glass-Steagall Act: The economy should work for Americans, not just Wall Street CEOs (U. S. News & World Report)

Peregrine CEO pleads guilty to fraud; to stay in jail (Reuters)

Though cyclical, droughts can be once-in-a-lifetime crises (AgriNews)

     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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