Tuesday, October 23, 2012

Tuesday roundup (10-23-12)

Quote of the Day:

"I wish it were possible to obtain a single amendment-to our constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its constitution; I mean an additional article, taking from the federal government the power of borrowing. I now deny their power of making paper money, or any thing else, a legal tender." -- Thomas Jefferson, future president of the United States, in 1798, in Thomas Jefferson Randolph, editor, Memoirs, Correspondence and Private Papers of Thomas Jefferson, Late President of the United States, Vol. 3, 1829 (Google Books)

World ‘Close’ to Recession: Stanley Fischer (CNBC)

Spanish Economic Picture Darkens: GDP Shrinks, Sparks Warning by Bank, as Moody's Trims Five Regions' Ratings (The Wall Street Journal) Spain Output Shrinks Fifth Quarter Amid Bailout Talk: Economy (Bloomberg) Rajoy Sees Case for Slowing Spain’s Austerity as Economy Shrinks (Bloomberg)

Spain’s ‘Vicious Circle’ Worsens as Moody’s Downgrades Regions (CNBC)

[Meanwhile ...] Europe ratchets up grip on Madrid: The EU-IMF Troika in charge of Spain's €60bn (£48bn) bank rescue is to demand much tougher action by the country's authorities to clean up toxic debts, risking a clash that could deter Madrid from requesting a full sovereign bail-out. (The Telegraph)

What Caused Spain's Crisis? Is Your Money Safe In Banks? (Cliff Küle's Notes blog) ["This video was recorded on 10 March 2012 in Madrid."] (Youtube)

Italy central bank warns on 2012 deficit trend (Reuters)

[German] Court asks inventory of gold reserves: Germany has the second largest gold reserves in the world, nearly 3400 tons. Supposedly, anyway. Because stocks have never been checked for authenticity and weight. Now, the Federal Court has asked the Bundesbank to examine the gold reserves abroad regularly. [This headline and summary provided by Google translator. The linked article is in German.] (Spiegel Online)

BoE ready for stimulus if positive signs from UK economy fade: King (Reuters)

Ireland’s ‘Celtic comeback’ is a myth (The Globe and Mail of Toronto)

Goldman Sachs VP explains why he quit: Greg Smith, who publicly resigned in scathing op-ed, says investment bank's unethical culture threatens firm's future. Anderson Cooper reports. (CBS News's 60 Minutes)

Richmo[n]d Fed Mfg Survey indicates contraction in October (Calculated Risk blog)

More Americans delaying retirement until their 80s (CNNMoney)

Dow Chemical cuts 2,400 jobs (CNNMoney)

DuPont to Cut 1,500 Jobs as Earnings Miss Estimates (CNBC)

Another 1000 jobs to go as massive cuts announced by the UK's biggest council [in Birmingham]: The Government is set to reduce a grant it receives by £53million next year and £332million over the next five years (The Mirror)

Peabody Energy announces [925] job cuts, earnings growth (Casper [WY] Star-Tribune)

     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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