Friday, December 14, 2012

Friday roundup (12-14-12)

Latest eurozone summit ends in stalemate: Two-day summit was supposed to lay out a grand plan and timetable for reforming and stabilising the euro regime (The Guardian)

Italian debt at record high above 2 trillion euros: Italian public debt has swelled to its highest ever level, reaching (EURO)2.014 trillion ($2.64 trillion) in October, the Bank of Italy said Friday - highlighting the country's fragile financial state in spite of the raft of austerity measures and reforms imposed by Prime Minister Mario Monti. (The Associated Press) Italy's debt tops 2 trillion euros in new headache for Monti (Reuters)

American People Are Against Reducing the Deficit (The Big Picture blog)

Regulators seize lender in Missouri, bringing to 51 the number of US bank failures this year (The Associated Press) Community Bank of the Ozarks of Sunrise Beach MO had a troubled assets ratio of 726.9%. (BankTracker)

     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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