Thursday, January 10, 2013

Thursday roundup (01-10-13)

[Europe's Central Banker Mario] Draghi says eurozone not past turning point yet (The Associated Press)

ECB rules out stimulus despite record jobless and fiscal squeeze:
The European Central Bank has dashed hopes of further stimulus to pull the eurozone out of recession and fight record unemployment, deeming the economy strong enough to heal itself. -- ["Athanasios Orphanides, a former ECB governor and a world expert on deflation, said the bank has misjudged the severity of the underlying economic crisis and is once again claiming victory too soon."] (The Telegraph) Orphanides Says ECB Should Cut Rates to Fight Worst Recession (Bloomberg)

France is in a mild recession, says central bank:
The French central bank repeated its estimate that France fell into a mild recession at the end of 2012, putting contraction in the fourth quarter at 0.1pc after equivalent estimated shrinkage in the third quarter. (The Telegraph)

Bank of England Leaves Interest Rate at Record Low (The New York Times)

Weak economy, large budget deficits will force Japan to default on domestic debt by Satyajit Das (The Economic Times of India)

US job openings barely grew in November (The Associated Press)

Is Jack Lew A Friend to Wall Street?: Like Tim Geithner, the new Treasury nominee may owe his views to Robert Rubin. So don't expect him to pursue much in the way of bank reform. (NationalJournal) Lew for Treasury: Some Questions From the People (The Huffington Post blog) Twelve Questions Progressives Should Ask Jack Lew (The Nation)

US Chamber chief: 'Exploding debt' is threat to economy (The Hill blogs)

Buffett Says Banks Free of Excess Pose No U.S. Threat (Bloomberg) How Secure Is Warren Buffett's $24 Billion Bet On America's Largest Banks? (Forbes)

Matt Taibbi: The Government Lied To Americans About Bank Bailout (The Huffington Post blog) Matt Taibbi On Bailout: Rolling Stone Contributing Editor Matt Taibbi discusses his feature "Secrets and Lies of the Bailout," along with Neil Barofsky, Former TARP Special Inspector General. (The Huffington Post blog)

Federal Bailout for Illinois on the Way?: Illinois Policy Institute CEO John Tillman on the state’s debt crisis. (FoxNews) [There is a video associated with this report which your blogger embedded, but which is stubbornly refusing to appear on the blog post at time of writing.]

Gov. Brown: California's Budget Deficit Is Gone! (The Associated Press) Gov. Brown: We are talking about living within our means [adding "This is new!"] (KCRA)

Dan Loeb Gets In On “The Best Managed Pyramid Scheme In The History Of The World” At A Discount (Dealbreaker) Loeb Versus Ackman – Sharks Eating the Sharks…. (Pragmatic Capitalism)

American Express to cut 5,400 jobs, take charges in fourth quarter (Reuters) AmEx Cuts Jobs as Digital Age Transforms Travel Business (Bloomberg)

Report: Time to Axe 700 Jobs Next Month, Save $100M (FoxBusiness)

     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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