Thursday, November 15, 2012

Thursday roundup (11-15-12)

1930s medicine pushes Europe back into double-dip recession: The eurozone has relapsed into double-dip recession as the austerity shock in the Mediterranean region spreads to the core countries of the north. (The Telegraph) The eurozone in recession in ‘all senses of the word’ (FT Alphaville blog) Euro Zone Recession Is Reinforced by Slump in a Second Quarter (The New York Times) Europe's economy returns to recession (The Associated Press)

IMF's Lagarde says important for euro zone to forge deal on Greece (Reuters)

Greeks Pelt German Diplomat in Austerity Protest (The New York Times)

French Economy Barely Grows as Hollande Faces Jobless Surge (Bloomberg)

U.K. Lawmakers Say RBS Bailout Cash May Not Be Recovered (Bloomberg)

Chinese perma-growth at risk as Leninists tighten Politburo grip (The Telegraph blogs)

Bartiromo: ‘Fiscal Cliff’ Deal? Don’t Count on It (CNBC)

Fiscal cliff will roil state budgets (CNNMoney)

Postal Service posts record $16 billion loss for 2012 (CNNMoney)

FHA likely to need a taxpayer bailout: report (Reuters) FHA Needs Bailout From Treasury to Plug Budget, Bachus Says (Bloomberg) 2012 FHA Actuarial Review Released: Negative $13.5 Billion economic value (Calculated Risk blog) FHA running out of money (The Washington Post)

U.S. says [it plans] to take steps to fill FHA capital hole, avoid bailout (Reuters)

Bernanke suggests Mortgage Lending Standards are "Overly Tight", "Pendulum has swung too far" (Calculated Risk blog)

Report on MF Global faults regulators (The Washington Post) Financial Services Subcommittee Report Finds Decisions by Corzine, Lack of Communication Between Regulators Led to MF Global Bankruptcy and Loss of Customer Funds (The US House of Representatives Committee on Financial Services)

BP Will Plead Guilty and Pay Over $4 Billion (The New York Times)

10 L.A. County courthouses to close: Budget cuts are forcing the shuttering of courthouses in Beverly Hills, West Los Angeles, Malibu and other locations. The closures are expected to occur over the next eight months. (The Los Angeles Times)

Ericsson announces 1,500 job cuts in Sweden (Ice News)

Dutch financial group SNS Reaal to trim 750 jobs (Reuters)

RailCorp to shed nearly 700 jobs (The Australian Broadcasting Corporation)

     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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