Wednesday, December 5, 2012

Wednesday roundup (12-05-12)

Roubini Says Fiscal Compact Will Deepen Euro Area Recession (Bloomberg)

Euro Zone's Businesses Stay Gloomy
(Dow Jones Newswires)

Deutsche Bank Hid $12 Billion in Losses: Staff (The Financial Times)

Darker growth outlook pushes [UK] austerity plan off track
(Reuters) U.K. extends austerity programs to 2018 (The Globe and Mail of Toronto)

UK's Osborne says debt to fall a year later than expected (Reuters) George Osborne's growth plan relies on us accruing even more debt: For all their promises of a new economic model, Britain's politicians on both sides remain stuck on the old debt-fuelled system (The Guardian)

[UK] Recession slashes family spending power by 10 per cent - households shell out on spiralling transport costs but are cutting back on clothes and shoes to pay for it (The Daily Mail)

Deflationary Trends in [US] Consumer Credit (Mish's Global Economic Trend Analysis blog)

Minn. projects $1.1 billion budget deficit (The Associated Press)

[Connecticut] State budget deficit grows to $415 million (The Yale Daily News)

Citigroup to Cut 11,000 Jobs, Take $1B Charge
(Bloomberg) Citi Exec to FOX Business: More Cuts Likely (FoxBusiness) Banks gird for new world as Citi cuts 11K jobs (USAToday)

     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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