Thursday, December 13, 2012

Thursday roundup (12-13-12)

Quote of the Day:

"Well, what the Fed's really fighting is a depression. They won't use that word. We've been in a depression since 2007. We've had zero interest rates since 2008. We'll probably have them until 2015. So what they're fighting is deflation and a depression. ... And also we have very low growth. When you can have growth in a depression, the problem is. you don't get trend growth. Trend growth is sort of 4 [percent], 4-and-a-half percent, something like that. We're getting 1 [percent], 1-and-a-half percent, sometimes 2 percent in a good quarter. So we're nowhere near trend growth. So it's the gap between trend growth and actual growth that is depressionary and also deflationary. The Fed's fighting that." -- Jim Rickards, senior managing director at Tangent Capital partners. (Russia Today)

Greece gets new EU aid, declares "Grexit" era dead (Reuters)

Italy at ‘point of no return’ on austerity, PM front-runner says
(The Globe and Mail of Toronto)

Squatters of Rome scrape by at the margins in Italy's crisis (Reuters)

Japan Tankan Business Confidence Falls to Near 3-Year Low (Bloomberg)

U.S. Manufacturing May Already Be in Recession
(Bloomberg)

No Sign of Progress After Boehner-Obama Meeting
(CNBC)

Fear the Debt Ceiling, Not the Fiscal Cliff (U. S. News and World Report blogs)

Get Basel III right and avoid Basel IV: To protect banks and the taxpayer, we must insist on strong capital for all banks by Thomas M. Hoenig, vice-chairman of the Federal Deposit Insurance Corporation (The Financial Times)

Barclays may cut up to 2,000 investment banking jobs: WSJ (Reuters)

California prison health care receiver issues [2,200] lay off notices [for 829 positions] (The Sacramento Bee blogs)

     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.

No comments:

Post a Comment