Thursday, September 13, 2012

Thursday roundup (09-13-12)

A Primer on the Euro Breakup: Depart, Default, and Devalue as the Optimal Solution (Hinde Sight)

Spain's Debt Challenge Bigger Than Italy's (The Wall Street Journal)

Greece will need a third bail-out: Greece will need a third bail-out if it is to avoid running out of cash, according to the country's representative at troika negotiations, as he revealed that only 22pc of the country's planned austerity cuts were implemented last year. (The Telegraph)

Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases (Bloomberg) Fed Ties New Aid to Jobs Recovery in Forceful Move (The New York Times) Will Fed's Mortgage Buying Juice the Housing Recovery? (CNBC) Economists React: ‘Bold Shift’ in Fed Policy (The Wall Street Journal blogs)

US budget deficit rises to $1.16 trillion through August, but trails last year’s pace (The Associated Press)

Former U.S. official Walker talks tough on deficit: Presidential candidates need a credible plan for a big problem, he says (Pittsburgh Post-Gazette)

10 million U.S. households don't have bank accounts (CNNMoney) On the Unsuccessful Efforts to Reach Out to the “Unbanked” (Iacono Research)

Jefferson County could default again on general obligation debt to pay bankruptcy lawyers (Birmingham 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 an energy shock may be coming much closer in time than is generally imagined.

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