Tuesday, February 26, 2013

Tuesday roundup (02-26-13)

Italy’s Political Mess: Why the Euro Debt Crisis Never Ended (Time)

Electoral Deadlock in Italy Rekindles Anxiety Over Economies in Euro Zone (The New York Times) Why Italy’s Stalemate Could Mean Chaos for Euro Zone (CNBC)

ECB bond plan in jeopardy as Italy's voters reject conditions: Italy's electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn. (The Telegraph)

Italy's anti-austerity vote raises the spectre of a bailout: Current bond yields suggest a touching faith that a workable political fudge will emerge sooner or later. But what if it doesn't? (The Guardian) ‘Ungovernable’ Italy: Debt crisis back on table: More market turmoil as investors deal with ‘worst-case’ outcome (Marketwatch) Elezioni, Bersani sfida Grillo: "Pronti a cambiare, dica cosa vuole fare":  Il segretario del Pd ammette la delusione: "Non abbiamo vinto anche se siamo arrivati primi". Poi, incalzato anche da Vendola, apre all'ipotesi di un governo che cerchi in Parlamento l'appoggio dei grillini su un pacchetto di leggi su "riforma della politica, nuova legge sui partiti, moralità pubblica e privata".  Il coordinamento del partito dà il via libera all'apertura al M5S ma Fioroni ammonisce: "Non inseguiamo i grillini sul loro terreno" (La Repubblica)

Italy must reduce unsustainably high level of debt - EU Commission (Reuters) EU Chiefs Tell Italy There’s No Alternative to Austerity (Bloomberg) Eurozone Commission President Pleads With Europe To Continue Austerity (Think Progress) Italian election: stalemate threat sends shivers through the eurozone: Poll cliffhanger brings fears that outgoing prime minister Mario Monti's austerity programme could be paralysed (The Guardian) ANALYST ON ITALY: 'This Could Become A Major Problem...' (The Business Insider)

Spain extremely worried by impact of deadlocked Italy vote (Reuters)

Portugal opposition chief demands renegotiation of bailout (Reuters)

Bank of England ready to pump more cash into the UK economy: Deputy governor Paul Tucker told MPs he was open to more quantitative easing, depending on the outlook for growth (The Guardian)

[UK] Bank chief raises the prospect of a base rate BELOW zero in bid to kickstart spending (The Daily Mail) Bank of England mulls negative interest rates: Deputy Governor floats plan that could mean new charges for customers (The Independent) Bank of England considers negative interest scheme for high-street banks: Deputy governor hints at move aimed at helping to boost economy through loans to small businesses (The Guardian) Don't worry: the Bank of England will never allow negative interest rates (The Telegraph blogs)

Bernanke Says Fed Reduced Risk of ‘Japanese-Style’ Deflation (Bloomberg)

350 Economists Warn Sequester Cuts Could Kill Recovery (The Huffington Post blog) Bernanke: Spending cuts add 'significant' burden to recovery (CNNMoney)

Elizabeth Warren, Ben Bernanke Clash Over 'Too Big To Fail' (The Huffington Post blog)

The Political Importance of Elizabeth Warren by Simon Johnson (Project Syndicate)

JPMorgan Says Mortgage Unit, Community Bank May Lose 19,000 Jobs (Bloomberg) JPMorgan To Slash 15,000 Mortgage Jobs By End Of 2014, Save $3B (Forbes) J.P. Morgan to cut 4,000 jobs in 2013 (Marketwatch)

     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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