Thursday, December 20, 2012

Thursday roundup (12-20-12)

After Libor, arguments against financial regulation are a joke (Thomson Reuters)

Fitch expects 'Bond Bubble' carnage when rate cycle turns: The worldwide stampede into corporate debt over the past year has fuelled a “bond bubble” that threatens heavy losses for investors once interest rates spike up again, Fitch Ratings has warned. (The Telegraph)

No austerity on menu at IMF's $350,000 Christmas bash
(The Irish Independent)

Spain 2012 Deficit Slippage Looms as Recession Deepens
(Bloomberg)

ECB criticizes Monte Paschi bailout terms (Reuters)

Cyprus 'could default within days': Cyprus could default on loan payments due this month unless it can reach an agreement on a bailout with international lenders within days, a government official said on Monday. (The Telegraph) IMF Demands Partial Default for Cyprus: Euro-zone member state Cyprus badly needs a bailout, but the International Monetary Fund is demanding a debt haircut first, according to media reports. The resulting standoff with Europe has delayed the country's badly needed aid package. To ward off insolvency, Nicosia has raided the pension funds of state-owned companies. (Spiegel Online)

Putin offers French tax row actor Depardieu a Russian passport (Reuters)

The Bank of England governor's huge salary is bolstered by amazing perks: Average earnings stay strangled, but still a corporate elite is getting richer while society pays the price (The Guardian)

Under pressure from Abe, Bank of Japan boosts stimulus again (Reuters) Bank of Japan launches 10 trillion yen of fresh easing: The Bank of Japan has ramped-up its money printing programme by 10 trillion yen (£732m), days after the conservative Liberal Democratic Party won an election promising to boost spending and pressure the central bank for aggressive action. (The Telegraph)

[US] House Speaker Boehner Cancels Vote on 'Plan B' (CNBC) 'Fiscal Cliff' Impasse: Can a Deal Still Get Done? (CNBC)

The Long-Term View on Debt and Deficits in the U.S. (Iacono Research) Charting US Debt And Deficit Since Inception (ZeroHedge blog)

Questions Remain About New Plan on ‘Too Big to Fail’ (The New York Times blogs)

Why an Atlanta Upstart Is Buying NYSE (It's Not Stocks) (CNBC)

Glenn Hubbard, Leading Academic and Mitt Romney Advisor, Took $1200 an Hour to Be Countrywide's Expert Witness (Rolling Stone blogs)

Siemens to cut almost 1,100 German jobs in energy sector (Reuters)

     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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