Saturday, March 16, 2013

Saturday roundup (03-16-13)

Economist Stiglitz warns not to expect a quick global recovery (Bangkok Post)

Euro Finance Ministers Grant Ireland, Portugal Eased Debt Terms (Bloomberg)

After Negotiations, Cyprus Agrees to a Euro Zone Bailout Package (The New York Times)

Why today’s Cyprus bailout could be the start of the next financial crisis (The Washington Post blogs) Facing Bailout Tax, Cypriots Try to Get Cash Out of Banks (The New York Times) Hitting the Savers: Euro Zone Reaches Deal on Cyprus Bailout: After fraught negotiations, euro-zone finance ministers reached a deal early Saturday to provide up to €10 billion ($13 billion) bailout funds to Cyprus, which faces bankruptcy in May. For the first time, deposits at banks in a country are being seized to assist in the rescue. (Spiegel Online)

Pope Francis wants Church to be poor, and for the poor (Reuters)

Paul Ryan says nation’s [= US's] debt is bigger than the economy (Tampa Bay Times Politifact)

Fed's Fisher: Too-big-to-fail banks are "crony" capitalists (Reuters) Fed’s Fisher Says Too-Big-to-Fail Banks Should Be Shrunk (Bloomberg)

Unofficial Problem Bank list declines to 801 Institutions (Calculated Risk blog)

LA County Courts to Cut 511 Jobs: The nation's largest trial court system will have lost nearly a quarter of its workers in the last four years (NBC Los Angeles)

     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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