Wednesday, December 19, 2012

Wednesday roundup (12-19-12)

Greece: A debt colony, shackled to its lenders: A new agreement between cash-strapped Greece and its eurozone lenders is bad for the Greek people and bad for democracy. (Al Jazeera)

Ireland bank debt easing 'essential' IMF warns EU:
The International Monetary Fund has warned Europe its inaction over Irish bank debt could threaten the nation's exit from its bail-out programme by the end of 2013. (The Telegraph)

Bank of England warns of triple dip: The Bank of England has warned that the economy is “quite likely” to shrink in the final three months of the year, bringing the recovery to an abrupt end, as it forecast that inflation will remain above 2pc “for the next year or so”.  (The Telegraph)

UBS admits fraud in £940m Libor rigging settlement (The Independent)

World Bank fears fresh credit bubble in China on hot money flows: China and Asia’s tigers are roaring back to life and risk a fresh credit booms unless they can choke inflows of hot money, the World Bank has warned. (The Telegraph)

Fitch warns fiscal cliff could cost U.S. its AAA rating (Reuters)

Boehner Challenges Obama With 'Plan B' Showdown (CNBC) Boehner's 'Plan B' isn't the deal, but it may lead to one (The Los Angeles Times)

Cliff Discussions Continue: David Stockman, OMB Director under President Reagan, says Washington should allow the US to go over the cliff (CNBC)

Why a recession may be coming no matter what fiscal-cliff deal is reached (Marketwatch)

     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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