Monday, January 21, 2013

Monday roundup (01-21-13)

Greek eurozone exit still likely despite European leaders resolve, warn economists: Greece is still likely to leave the eurozone, according to leading economists, but it could take several years as the European leaders resolve to save the debt-laden country has been underestimated. (The Telegraph) IMF sees up to 9.5 billion euro Greek funding gap in 2015-2016 (Reuters)

Troika Travails: Split Emerges Over Cyprus Bailout Package: Cyprus is in urgent need of money from the euro rescue fund, but the troika responsible for the bailouts is split over how it should be structured. The IMF is worried that the country's debt load is not sustainable. (Spiegel Online)

Heavy Snow Heightens Risk of Triple Dip [in the UK] (The Financial Times) Never mind the snow – it's austerity that's disrupting the economy: Tory economic policy has encouraged a fall in productivity over five quarters: if that carries on, it means a structural crisis (The Guardian)

Jim Cramer Was Right—They Knew Nothing! (CNBC) Wall Street Crying (Youtube)

State [of Minnesota] pension plans underfunded by over $16 Billion: Minnesota's public pension plans for government employees are underfunded by $16.7 billion — a deficit that's $4 billion larger than it was when lawmakers took steps to fix the problem in 2010. (The Associated Press)

Illinois Democrats still eye borrowing to pay down $9 billion in overdue bills (The Associated Press)

     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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