Sunday, March 17, 2013

Sunday roundup (03-17-13)


EU raid on savings to fund bail-out for Cyprus 'threatens recovery': The decision to raid people’s savings to fund a bail-out for Cyprus sets a “worrying precedent” that could jeopardise the European economic recovery, financial experts have warned. (The Telegraph) Cyprus Bailout 'Disaster' Risks New Euro Crisis (CNBC) The Cyprus bail-out: Unfair, short-sighted and self-defeating (The Economist blogs) Cyprus Update (Calculated Risk blog) The Stunning Bailout Of Cyprus Is A Reminder Of Who's Really In Charge ... (The Business Insider)

Savers across Europe will look on in horror at the Troika's raid on Cyprus: It's now become clear: the threat to European savers and banks isn't anti-austerity parties but the Troika (The Guardian) What will savers do? (The Economist blogs) Sowing the wind (Coppola Comment blog)

Paul Krugman: Cyprus Bailout Will Push Europeans To Stage A Run On Their Banks (The Huffington Post) Cyprus bank levy risks dangerous euro zone precedent (Reuters) The high price of saving Cyprus -- ["The real question is whether this unprecedented raid won’t trigger a run on banks elsewhere."] (The Independent) "The levy is 'a worrying precedent with potentially systemic consequences if depositors in other periphery countries fear a similar treatment in the future,' Joachim Fels, chief economist at Morgan Stanley in London, wrote in a note to clients." (Bloomberg)

Cyprus parliament postpones vote and debate on controversial bank deposit tax to Monday (The Associated Press)

CYPRUS PRESIDENT: Nation Faces Total Financial Collapse And Euro Exit Without Bailout (The Business Insider) Cyprus Faces Risk of Disorderly Exit From Euro -Cyprus President (The Wall Street Journal)

Italian president urges unity as poll pressure grows (Reuters)

There's no immediate [US] debt crisis, Boehner says, agreeing with Obama -- [but there is "one that lies dead ahead"] (The Los Angeles Times) Ryan: U.S. doesn't have a debt crisis yet -- ["But, Ryan added, a crisis is 'irrefutably' on its way."] (CBSNews)

     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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