Sunday, October 7, 2012

Sunday roundup (10-07-12)

Global Economic Recovery Hits the Ropes (The Brookings Insititution)

Europe Seeks to Contain Spanish Troubles as Finance Chiefs Meet (Bloomberg) Europe Still at Odds Over the Workings of Its Bailout Fund (The New York Times)

Single euro-zone budget gains momentum ahead of summit (Reuters)

Economics: the failure of European monetary union has been abject: The best thing would be if the euro were smashed. The alternative is to see the flames lick higher (The Guardian)

Eurozone governments can do little harm by cutting back on deficits: Across the eurozone, governments are cutting their deficits. In 2009 the average government deficit throughout the eurozone was 6.4pc of GDP (a bit over half the deficit in Britain that year). (The Telegraph)

ECB board member shuts door on Greek pleas for leniency: Greece cannot have more time to repay its debt to the European Central Bank because it would be illegal and "illogical", board member Joerg Asmussen has said, as he shut the door on pleas for leniency from the bank. (The Telegraph)

Anti-austerity protests grip 56 Spanish cities (The Associated Press)

Spain’s prime minister takes a gamble in not seeking bailout (The Washington Post)

The Dismal Truth About Spain's Desperate Economic Situation (The Business Insider)

French search in vain for Hollande vision (Reuters)

Cameron warns Britons to expect more budget cuts (Reuters) Jobless with big families could lose benefits: Osborne vows to slash £10bn from welfare bill (The Daily Mail)

Japanese stagnation offers glimpse of a future best avoided (The Globe and Mail of Toronto)

U.S. deficit ends fourth fiscal year above $1 trillion: CBO (Reuters)

How Washington’s Dysfunction Harms Economic Growth (Bloomberg)

Can The Fed Ever Exit? (ZeroHedge blog)

Breaking Up the Big Banks: Is Anybody Thinking? (Harvard Law School blogs)

California Gasoline Prices Hit an All-Time High — Twice (The Associated Press)

     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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