Sunday, November 18, 2012

Sunday roundup (11-18-12)

Shadow Banking Grows to $67 Trillion Industry, Regulators Say (Bloomberg) Beyond Regulators' Grasp: How Shadow Banks Rule the World: Beyond the banking world, a parallel universe of shadow banks has grown in the form of hedge funds and money market funds. They're outside the reach of conventional financial regulation, prompting authorities to plan introducing new rules to prevent the obscure sector from triggering a new financial crisis. But in doing so they risk drying up an important source of funding to banks and firms. [Nov. 14] (Spiegel Online)

Kyle Bass: Very Few Get the `Crisis Correct' (Bloomberg)

Prison of Debt Paralyzes West: Be it the United States or the European Union, most Western countries are so highly indebted today that the markets have a greater say in their policies than the people. Why are democratic countries so pathetic when it comes to managing their money sustainably? (Spiegel Online)

Merkel's day of reckoning as taxpayer haircut on Greece looms: Germany, Holland, and the creditor states of northern Europe have not lost a single cent on eurozone rescue packages, so far. (The Telegraph)

ECB's Asmussen says Greece to need aid beyond 2014 (The Associated Press)

Thousands of Spanish police protest austerity cuts hitting them, including no Christmas bonus (The Associated Press)

Popularity of France's Hollande continues decline: poll (Reuters)

Sheila Bair Says We're Headed for Another Crisis: The former head of the FDIC thinks we're in the middle of a "bond bubble." (The Atlantic)

We Are Speeding Towards Economic & Social Devastation -- ["Andrew Dickson White was a professor of history in the second half of the 19th century. ... White’s relevance to today’s investors is his compilation of a lecture that looked at the French experience with fiat money during the French Revolution in the waning years of the 18th century.  His work was published in book form under the title of 'Fiat Money Inflation In France'."] (King World News) Norway Central Banker Reviles Fed Cash in John Law Quip (Bloomberg) Fiat Money in France by Andrew Dickson White, Introduction by Henry Hazlitt (Archive)

Fiat money inflation in France - Part 1: John Law (Youtube)

Fiat money inflation in France - Part 2: Assignats (Youtube)

The Past of the Dust Bowl Is Very Present In Ken Burns’ New Documentary (National Geographic) Ken Burns' 'The Dust Bowl' uses personal stories to take you back to the horror (The Plain Dealer of Cleveland OH blogs) THE DUST BOWL: A Film By Ken Burns | Premieres Sun., Nov. 18th | PBS (Youtube)

     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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