Friday, January 18, 2013

Friday roundup (01-18-13)


Euro zone’s debt crisis and austerity policies continue to tamp down growth – UN report (UN News Centre)

IMF chief urges big world economies to promote growth (Reuters)

Is the eurozone's core cracking up?: Political uncertainty has always surrounded a German-led solution to the crisis – but Berlin's economic woes mean it may soon no longer be plausible (The Guardian)

Greece to need more EU debt help as soon as next year: IMF (Agence France Presse) IMF Says Greece Will Need More Money, Has Elevated Risks (Bloomberg)

Italy’s Recession to Be Deeper Than Expected, Central Bank Says (Bloomberg) Bank of Italy sees gloom deepening for economy (Reuters)

Italy Needs 9 Billion Euros for Deficit Goal, Official Says (Bloomberg)

IMF says eurozone needs Portugal to stick with its austerity program despite hardship (The Associated Press)

[US] Consumer Sentiment Falls Again (Iacono Research)

House Republicans agree to vote on bill to raise debt limit for 3 months (The Washington Post) Raising the Debt Ceiling, Inch by Inch (The New York Times blogs) Difficult Choices on Debt if the U.S. Hits the Ceiling (The New York Times)

The Trillion Dollar Coin: Joke or Game-Changer? by Ellen Brown (TruthDig)

Geithner says history will validate unpopular Wall Street bailouts (The Hill blogs)

Days Before Housing Bust, Fed Doubted Need to Act (The  New York Times) Fed Slow to Grasp Crisis in 2007 as Yellen Sounded Alarm (Bloomberg) Janet Yellen for Fed Chair! (CNN) Federal Reserve was blind to crisis in 2007 (CNNMoney) FOMC: Transcripts and Other Historical Materials, 2007 (Board of Governors of The Federal Reserve System)

Leveling the Playing Field: Financial reform must be redirected. The government’s financial safety net for the biggest banks should cover only their essential banking activities and their role in the payments system. Once that occurs, market discipline can reassert itself, and all institutions — large and small — can compete on a more level playing field. (The Dallas Fed)

Regulators shut down small lender in Minnesota, representing 2nd bank failure of 2013 (The Associated Press) 1st Regents Bank of Andover MN had a troubled assets ratio of 335.1%. (BankTracker) 1st Regents Bank, Andover, MN, Closed By Regulators (Problem Bank List)

Cargill meatpacking plant cuts 2,000 jobs in Texas (The Associated Press)

State Street Corp. discloses plans to cut 630 jobs (The Boston Globe)

     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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