Sunday, January 13, 2013

Sunday roundup (01-13-13)

Winter of Discontent Looms for PIIGS: Goldman Sachs (CNBC)

It's Too Soon to Be Sure of a Euro Zone Happy Ending [Reuters via] (The New York Times)

Mario Draghi has saved the rich, now he must save the poor: The European Central Bank has washed its hands of any further responsibility for the 27m people across the eurozone listed as unemployed or classified as discouraged workers. (The Telegraph)

Germans are warned: Irish may need fresh bailout (The Irish Independent)

French capital flight spikes as Hollande hits business: France suffered a surge of capital flight over the autumn as president Francois Hollande pushed through a raft of tax rises and stepped up his campaign against the rich. (The Telegraph) France Could Be Next European Economic Disaster (U. S. News & World Report blogs) IMF Concerned With the Pace of France’s Economic Reform (Brookings Institution)

[US] Budget deficit set to hit $1 trillion for fifth straight year (The Associated Press)

Wall Street thanks you for your service, Tim Geithner: First the treasury secretary propped up the big banks with public spending. Then he backed their agenda: cuts to public spending -- "most, if not all, of the major Wall Street banks would have collapsed if the government had not intervened to save them" (The Guardian) Jack Lew, Tim Geithner: the treasury's new boss, same as the old boss: Geithner helped save the banking system from collapse, but then did nothing to reform it. And Lew himself was a beneficiary (The Guardian)

Deminted: Treasury rejects the platinum coin (The Economist blogs)

[Banks Are] Paying the Price, but Often Deducting It (The New York Times)

Philly newspaper union: Company threatens ‘liquidation’ (Philly)

Heat, Flood or Icy Cold, Extreme Weather Rages Worldwide (The New York Times)

     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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