Wednesday, October 24, 2012

Wednesday roundup (10-24-12)

Euro-Area Recession Deepens as Manufacturing Shrinks: Economy (Bloomberg)

Eurozone debt burden rises to 90 percent of its economy despite raft of austerity measures (The Associated Press) Sisyphus and the European Debt (Iacono Research) Italy's public debt hits record high of 126.1% of GDP (ANSA) Portugal Has Less Room to Maneuver With Rising Debt, IMF Says (Bloomberg)

Draghi Defends Bond Purchases With Warning of Deflation (Bloomberg)

El-Erian: Time For Politicians To Step Up And Save Europe -- ["We came very, very close to an implosion of the Eurozone at the end of July"] (Forbes)

Greece says it has been given more time on austerity (Reuters) No deal yet on Greek deficit target: ECB official (Agence France Presse)

Spain's 2012 Social Security to Register Deficit of EUR10.5 Billion - Reports (Dow Jones Newswires)

Bundesbank slashed London gold holdings in mystery move: Germany withdrew two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago, according to a confidential report that emerged on Wednesday. (The Telegraph)

End The Euro Zone Crisis Now: Let PIIGS Borrow Against Their Gold (Forbes)

Children will live in in shadow of economic crisis for a 'long time', says Bank of England Sir Mervyn King (The Daily Mail)

Foreclosure fallout [in the US] cost nearby homeowners $2 trillion, report finds (NBCNews)

U.S. sues BofA, calling loan fraud 'brazen': The $1-billion civil suit alleges that BofA's Countrywide fraudulently deceived mortgage finance giants Fannie Mae and Freddie Mac into believing the company's risky loans were safe and sound. (The Los Angeles Times) U.S. sues Bank of America over "Hustle" mortgage fraud (Reuters)

Neil Barofsky’s Disappointment with Vikram Pandit and President Obama: Former TARP Inspector General Neil Barofsky explains his disappointment with the former Citigroup CEO and the president for failed financial leadership. (Bill Moyers & Company)

Sheila Bair Called It - Foreclosure Lookback Reviews Are A "Ruse" (Forbes)

New WalMarts hurt large retailers, mom-and-pops less affected (Science Blog)

Kimberly-Clark to Cut 1,500 jobs in Europe: The company announced it would close or sell five manufacturing facilities and some production would be transferred to other plants. (Industry Week)

Ford set to axe British plant ["with the loss of more than 500 jobs"] after dire sales in eurozone: After closure of Belgian plant, Transit van site in Southampton awaits fate (The Independent)

     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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