Wednesday, February 27, 2013

Wednesday roundup (02-27-13)


High unemployment threatens future of the EU - ministers (Reuters)

Draghi Says ECB in No Rush to Tighten as Inflation Slows (Bloomberg)

Euro zone mulls help for Portugal, Ireland market return - sources (Reuters)

Italy's Grillo rules out voting for center-left government (Reuters) In Italy's Disarray, Berlusconi Emerges Anew as a Power (Bloomberg) The Berlusconi Effect: Political Gridlock Wins Italian Elections: First the good news: Silvio Berlusconi didn't win the Italian election. But the bad news is disturbing enough. Center-left leader Pier Luigi Bersani was unable to win control of the Senate, meaning that a stable government in Italy looks unlikely. The results for Europe could be devastating. (Spiegel Online) Italy Investors Will Force Bersani-Berlusconi Deal, Polillo Says (Bloomberg)

Italy turmoil raises questions about ECB backstop (The Associated Press)

Monti Government Mulls Delaying Monte Paschi Bailout (Bloomberg)

Spain’s Bankia-Led Bailout Won’t Spell End of Bank Troubles (Bloomberg)

Slovenia Replaces Premier Amid Battle to Avoid Bailout (Bloomberg) Slovenia’s Economy Contracted Further on Austerity, Survey Shows (Bloomberg)

Economists See [US] Budget Cuts Putting The Recovery At Risk (National Public Radio)

Fitch warns U.S. risks losing AAA debt rating (USAToday)

Bernanke tells Warren ‘too big to fail’ banks ‘will voluntarily reduce their size’ (The Raw Story)

Grand Old Parity by Sheila C. Bair (The New York 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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