Friday, January 11, 2013

Friday roundup (01-11-12)

OECD Says Euro Zone Banks Still Short of Capital (Dow Jones Newswires)

U.K. Recession Risk Rises as Industry Weakness Persists: Economy (Bloomberg) NIESR warning fuels fears of triple-dip recession (The Independent)

Irish progress could be destroyed without debt deal - Commission (The Irish Times)

Defiant villagers lead Irish debt resistance (The Financial Times)

Cyprus 'debt haircut' not a option, says EU's Olli Rehn after Moody's downgrade: The eurozone is not considering a debt restructuring for Cyprus, the EU's top economic official was quoted on Friday as saying, as the heavily indebted island struggles to negotiate an international aid deal. (The Telegraph)

Japan Approves $116 Billion for Urgent Economic Stimulus (The New York Times)

‘Any Lawful Steps’ Urged [on President Obama by Democrats] to Avert Default (The New York Times)

Postal Service's fiscal cliff coming this spring (CNNMoney)

Jack Lew [= Obama's nominee for Treasury Secretary] had major role at Citigroup when it nearly imploded (The Washington Post)

Matt Taibbi & William Black on Bailout Secrets & How New Foreclosure Deal Spares Banks from Justice (Democracy Now)

Krugman and Obama's Dangerous Austerity Myths by William K. Black (The Huffington Post blog)

Why the Banks Were Thrilled About $8.5B Settlement by Barry Ritholtz (The Big Picture blog) Bank Deal Ends Flawed Reviews of Foreclosures (The New York Times)

Student Loans Accounted for 87 Percent of the Overall Increase in Outstanding Consumer Credit Last Year (Iacono Research)

Washington State Bank Closes; First Failure of '13 (The Associated Press) Westside Community Bank of University Place WA had a troubled assets ratio of 962.6%. (BankTracker)

Honda to Cut 800 U.K. Jobs as European Car Market Shrinks (Bloomberg) Honda cuts 800 jobs at Swindon as European car sales slump: 'Hammer blow' for workers and local economy as carmaker announces plan to axe almost a quarter of employees at factory (The Guardian)

     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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