Tuesday, January 15, 2013

Tuesday roundup (01-15-13)


The Eurozone Crisis Is Over, but the Eurozone Economy Is Worse Than Ever (Slate) Euro-zone debt crisis enters challenging new phase: Central bankers win battle, but not the war (Marketwatch)

German Economy Probably Contracted 0.5% in Fourth Quarter (Bloomberg) German Economy Slows Sharply as Crisis Hits Home (CNBC) Slowdown in Germany Worries Euro Zone (The New York Times)

Bundesbank to pull gold from New York and Paris in watershed moment: Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris. (The Telegraph) It Begins: Bundesbank To Commence Repatriating Gold From New York Fed (Zero Hedge blog)

UK's AAA credit rating under 'significant pressure', warns Fitch: Ratings agency says slow recovery and fiscal consolidation leaves Britain vulnerable to fresh economic shocks (The Guardian)

[Meanwhile, back at the ranch:] Fitch warns that debt-limit delay could hurt U.S. credit rating: The company says lawmakers should not use raising the nation's debt limit as leverage to get government spending cuts. (The Los Angeles Times) Credit Rating Agency Warns of Downgrade if Debt Limit Is Not Raised (The New York Times blogs)

4 Ways to Avert the Debt Ceiling (and the Most Likely Option Is the Scariest): Here's why Ben Bernanke killed the platinum coin, and what it means for the debt-ceiling showdown (The Atlantic)

US Postal Service faces ruin without rescue from Congress, watchdog warns: Inspector general David Williams says cash-strapped service, saddled with debt and low revenues, is in 'very serious trouble' (The Guardian)

Anglo platinum arm sheds 14,000 jobs, risking unrest (Reuters)

Air Berlin to cut 900 jobs in savings drive (Reuters)

Renault to Cut 17% of French Jobs on European Car Market [= 7,500 positions] (Bloomberg)

     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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