Monday, January 7, 2013

Monday roundup (01-07-2013)

Europe faces another daunting year (The Globe and Mail of Toronto) Doom scenario far-fetched but euro gloom to deepen (Reuters)

Berlusconi’s political resurgence sparks worries in euro zone (The Globe and Mail of Toronto)

U.S. may default on its debt half a month earlier than expected, new analysis shows (The Washington Post)

US '[somewhat] seriously' considering $1 trillion coin to pay off debt:
The US is "seriously" considering creating a $1 trillion platinum coin to write down part of its debt to stop the world's largest economy defaulting as early as next month, according to financial analyst Cullen Roche. (The Telegraph)

In Deal, Bank of America Extends Retreat From Mortgages (The New York Times blogs)

10 banks agree to pay $8.5B for foreclosure abuse: Banks including BofA, JPMorgan, Wells Fargo agree to pay $8.5B for wrongful foreclosures -- "'It's another get out of jail free card for the banks,' said Diane Thompson, a lawyer with the National Consumer Law Center." (The Associated Press)

Why Americans Distrust Big Banks ... And why that’s bad news for our economy and a problem needing a solution … fast. (The Memphis [TN] Flyer)

UBS Plans 10,000 Job Cuts [of which 2,000 to 3,000 are new], Raises Profitability Goal
(Bloomberg)

Crisis: Spain; Banco Novagalicia announces 2,508 layoffs (ANSAMed)

     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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