Wednesday, February 13, 2013

Wednesday roundup (02-13-13)

Euro zone seen dropping deeper into recession as Germany slips (Reuters)

Rehn Says Austerity Policy Not to Blame on Slow EU Growth (Bloomberg)

Eurozone must push ahead with banking union or risk recovery, says IMF: Eurozone countries must implement a planned banking union in full as backsliding could throw the economy into a tailspin, an International Monetary Fund staff paper has concluded. (The Telegraph)

France to miss 2013 deficit goal, says prime minister (Reuters) [As a result:] "France is braced for a new round of spending cuts" (The Irish Times)

Czech Economy in Record-Long Recession as Austerity Bites (Bloomberg)

Cyprus rescue may set unwelcome euro zone precedent (Reuters)

Japan fourth-quarter GDP shows economy still in recession, pick-up eyed (Reuters)

Obama urges a move away from narrow focus on politics of austerity (The Washington Post)

Austerity hobbling U.S. growth, forecaster says: There’s not enough spending out there, says Briefing’s Rosen (Marketwatch)

Four in 10 Americans are living paycheck to paycheck, study says (The Los Angeles Times)

Break up the banks (The Hill)

Will Johnson [Republican Senator from Wisconsin] and Warren [Democratic Senator from Massachusetts] Pair Up to End ‘Too Big to Fail’? (The National Review Online)

[Republican] Congressman [John Campbell] Wants To Warn Creditors Of Too-Big-To-Fail Banks That Those Banks Can Fail (Dealbreaker)

USPS urges Congress to help it avoid a 'taxpayer bailout' (NBCNews) Postmaster general asks lawmakers not to block five-day delivery (The Washington Post)

Housing official says FHA could avoid need for bailout [via "aggressive measures"] (Reuters)

US Airways-American Airlines deal OK'd [which would create the world's largest airline] (CNNMoney) American and US Airways Merger Is Said to Be Approved by Boards (The New York Times blogs)

[Dutch Banking and Insuring Group] ING to Cut 1 Billion Euros in Costs, Slash 7,500 Jobs (CNBC)

Thomson Reuters to cut 2,500 jobs (Marketwatch)

Westinghouse to lay off [about 665] workers worldwide (The Pittsburgh Post-Gazette)

     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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