Friday, January 4, 2013

Friday roundup (01-04-13)

BIS hails a heretical revolution by Steve Keen (The Business Spectator of Australia)

U.K. Services Unexpectedly Shrink as Recession Risk Rises (Bloomberg) Triple-dip recession, here we come: To call the latest services sector health check from CIPS and Markit a disappointment is an understatement (The Guardian)

UK households reduce exposure to debt: Drop in total lending to individuals driven by £169m fall in the value of mortgages, Bank of England says (The Guardian)

Does Britain's austerity hold lessons for the United States? (Reuters)

Mediocre job growth points to slow grind for U.S. economy (Reuters) U.S. Continues to Add Jobs at Slow Pace, Report Shows (The New York Times)

2 months until next budget crisis?: A prominent economist known as 'Dr. Doom' says the country's budget dispute will come roaring back soon. (MSNMoney)

Ten steps to the debt ceiling (The Washington Post blogs)

US and Debt: Less Like Greece Than Japan (The Fiscal Times)

Secret and Lies of the Bailout:
The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come by Matt Taibi (Rolling Stone)

What’s Inside America’s Banks?: Some four years after the 2008 financial crisis, public trust in banks is as low as ever. Sophisticated investors describe big banks as “black boxes” that may still be concealing enormous risks—the sort that could again take down the economy. A close investigation of a supposedly conservative bank’s financial records uncovers the reason for these fears—and points the way toward urgent reforms. (The Atlantic)

GM could face $918 million hit from bankruptcy-related lawsuit (Reuters)

Infosys plans to cut 5,000 jobs? (Agence France Presse)

Santander to cut 3,000 jobs after Banesto merger: report (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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