Wednesday, February 6, 2013

Wednesday roundup (02-06-13)

EU summit to debate austerity budget, tough cuts (The Associated Press)

Europe Consumers Are World’s Most Pessimistic: Survey (CNBC)

Monte Paschi puts derivatives loss at 730 mln euros (Reuters)

Ireland set to liquidate "bad bank," reduce bailout costs (The Associated Press) ECB May Seek More Time to Weigh Irish Plan on Precedent Concern (Bloomberg)

[UK] Families face further tax rises as think tank predicts more job losses (The Independent) UK deficit reduction will need big tax rises after next election, experts warn: Institute for Fiscal Studies warns £64bn deficit needs more than public spending cuts – tax rises of £10bn-12bn needed too (The Guardian)

OECD tones down backing for George Osborne's staunch austerity programme: Economic thinktank warns chancellor he may need to accept slower pace of deficit reduction (The Guardian)

Bank of England should be ready pump out more money, OECD says (Reuters)

RBS Hit by $612 Million Fine on Libor Scandal (CNBC) R.B.S. Settlement a Burden for Britain (The New York Times blogs)

[US] Postal Service plans to end Saturday mail delivery by August (The Washington Post blogs) This Graph Explains Why the U.S. Postal Service Is About to Cut Saturday Mail Delivery (The Atlantic) Delivery Cuts Only 'One Step' To Fix Finances: Postmaster General (CNBC) Postal workers worry about job security (CNNMoney)

CBO: Turns out austerity is bad for the economy (MSNBC) U.S. FISCAL POLICY IS UPSIDE DOWN (The New Yorker blogs) The gigantic debt is crushing our economy (The Washigton Post blogs) [But ...] Can we cut deficits without killing the recovery? (The Washington Post) Analysis: Even brief spending cuts could hit U.S. economy hard (Reuters) "There is clearly no recognition that the U.S. has come to the end of a multi-decade credit boom that has goosed both economic growth and employment." (Iacono Research)

Republicans call for changes to ailing FHA: FHA’s fund short $16.3 bln needed to cover future loss: report (Marketwatch)

Illinois governor to bear grim news over pension crisis (Reuters) [Meanwhile ...] What deficit? Illinois lawmakers OK $2.1 billion in new spending (Illinois Watchdog)

Banks Must End ‘Brazen, Flagrant’ Manipulation: CFTC’s Chilton (CNBC)

Why the Ratings Agencies Deserve the Death Penalty by Barry Ritholtz (The Big Picture blog) More on the DOJ, Standard & Poor’s, and Moody’s (Iacono Research)

Did "Securitization" Play a Big Role in The Financial Crisis? (Cliff Küle's Notes)

Spain's Bankia limits job cuts to 4,500: unions: Bailed-out Spanish finance giant Bankia agreed Wednesday to limit the number of job cuts in its restructuring to 4,500, unions said. (Agence France Presse)

Hannaford parent cutting 500 corporate jobs (Portland [Maine] Press Herald)

Youngest Woman Billionaire Owes Fortune to Flipping Burgers (ABCNews)

     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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