Sunday, January 20, 2013

Sunday roundup (01-20-13)

EU approach to solving state solvency problems is baffling and inconsistent: The Cypriot bailout will be bigger than Greece, Portugal and Ireland's – yet it may be about to get sizable haircuts (The Irish Independent)

EU doubts put pound's 'safe haven' status at risk, traders warn: The pound risks losing the 'safe-haven' status it has enjoyed among international investors as doubts grow over Britain's future in the European Union, one of the world's largest currency traders has warned. (The Telegraph)

Big Banks’ Biggest Foe Says It’s Time to Break Up (The Fiscal Times) Mr. Fisher Goes to Washington (The Economic Populist) Ending 'Too Big to Fail': A Proposal for Reform Before It's Too Late (With Reference to Patrick Henry, Complexity and Reality) by Richard W. Fisher (The Federal Reserve Bank of Dallas)

QBE poised to cut hundreds of jobs [= 700]: report (The Australian 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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