Friday, November 30, 2012

Friday roundup (11-30-12)

Quote of the Day: "... the major conflict on the planet has ... everything to do with the impact of the shadow banking system. That's what's actually caused this enormous catastrophe around the globe financially. ... And we have to say that the finance sector, once it grows past the stage where it services entrepreneurs and investment -- it becomes a parasite. And we've now got the biggest parasite probably in the history of humanity in this financial system today ... they fund mergers and acquisitions, leveraged buyouts, mortgage-backed securities, and all this continuous production of derivatives, which is giving us this massive debt overhang without increasing the productive capacity of society. And that's why we're in this stench right now. ... we have to realize the finance system will always want to create more debt, because creating debt is the source of their making profits. So they're going to try to find some way to con us into more debt. And the best way is through Ponzi schemes that generate asset bubbles in shares and property. And we're living through, again, the biggest we've seen on the globe on that front." -- Economist Steve Keen on Max Kaiser's The Kaiser Report. (Russia Today)

Eurozone unemployment hits record high of 11.7pc: Recession in the eurozone forced a further 173,000 people out of work during October and pushed the unemployment rate to a record high of 11.7pc. (The Telegraph) Euro-Zone Inflation Falls Sharply, Unemployment Rises Again (The Wall Street Journal)

Moody's downgrades eurozone's rescue funds: The eurozone was dealt a fresh blow as Moody’s Investors Service downgraded the region’s rescue funds and unemployment hit a new record high. (The Telegraph)

Basel Committee Said to Consider Delay of Bank Liquidity Rule (Bloomberg)

Italy Unemployment Rose to Highest in 13 Years in October (Bloomberg)

Amsterdam auto show canceled due to economic crisis

Fourth Quarter [in the US] Looking Worse and Worse (The Wall Street Journal blogs)

Researchers: Most economic uncertainty since Great Depression (The Stanford [University] Daily)

Boehner says fiscal talks 'going nowhere,' as Obama warns of middle class tax hikes (FoxNews) Boehner: 'Fiscal cliff' talks hit 'stalemate' (The Los Angeles Times) Obama Warns of ‘Prolonged’ Talks as Republicans Rebuff Plan (Bloomberg) Q&A: The Fiscal Cliff: Key points about the looming national debt crisis (The Washington Post)

Only three major U.S. cities [Dallas, Texas; Pittsburgh, Pennsylvania; and Knoxville, Tennessee] see economic recovery: study (Reuters)

Osram to cut 4,700 jobs after spin-off from Siemens (Reuters) Siemens to Cut 4,700 More Lighting Jobs to Save $1.3 Bln (Bloomberg)

EADS's Cassidian To Cut Up To 850 Jobs, Mainly In Management, Administration (Dow Jones Newswires

     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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