Sunday, December 9, 2012

Sunday roundup (12-09-12)

Basel Liquidity Rule May Be Watered Down Amid Crisis Concerns (Bloomberg)

World risks fresh credit bubble, Switzerland's BIS warns: Asset prices across the world have risen to heady levels not seen since the credit boom five years ago and may be losing touch with economic reality yet again, the Bank for International Settlements has warned. (The Telegraph)

Europe clings to scorched-earth ideology as depression deepens: Like the generals of the First World War, Europe’s leaders seem determined to send wave after wave of their youth into the barbed wire of tight money, bank deleveraging, and fiscal austerity a l’outrance. (The Telegraph)

With Monti pushed out, Italy returns to forefront of debt crisis (The Globe and Mail of Toronto)

Poverty on the rise as austerity measures take hold in the Netherlands
(The Irish Times)

Britain's business minister sees risk of triple-dip recession

Japan Sinks Into Recession as Abe Calls for More Stimulus Steps (Bloomberg)

Obama and Boehner Resume US Fiscal Cliff Talks
(The Financial Times)

IMF chief Christine Lagarde warns US of worldwide effects of fiscal cliff: On CNN's State of the Union, monetary fund boss says improvements on employment and debt would be negated (The Guardian) Lagarde: ‘Zero’ growth for US if Congress, Obama don’t get deal (The Hill blogs)

Fed Is Likely to Sustain Its Stimulus Program (The New York Times)

End of Jobless Benefit Extension 'the Real Cliff' (The Associated Press)

U.S., UK bank seizure plans focus on absorbing losses: regulators (Reuters)

IMF on Derivatives
(Cliff Küle's Notes blog)

     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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