Thursday, January 24, 2013

Thursday roundup (01-24-12)


The Global Economic Disease in 8 Points and the Cure in 4 Points by Charles Hugh Smith (Of Two Minds blog)

Dr Doom says quantitative easing will create zombie banks, firms and borrowers: Nouriel Roubini said at Davos that central bankers risked saddling the economy with debt-burdened QE addicts (The Guardian)

Italian bank seeks to calm investors over trades (The Associated Press) Monte Paschi plunges on derivatives loss (EuroNews)



Spanish Jobless Rate Hits Record After Rajoy’s First Year (Bloomberg)

Rising bad loans signal more pain for Spanish banks (Reuters)

[UK's] Austerity plan is failing, IMF tells Osborne: IMF's Olivier Blanchard suggests UK needs reassessment of fiscal policy including changes to tax and public spending (The Guardian blogs)

[In the US] We Need a Politician Like Carter Glass (American Banker)

[In Juneau, Alaska:] City, State balance sheets face $11 billion in unfunded retirement (Juneau Empire)

Symantec Seen Possibly Cutting More Than 1,000 Jobs in Restructuring - Analysts (Dow Jones Newswires)

United Continental to cut 600 jobs; reports loss (The Chicago Sun-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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