Tuesday, March 26, 2013

Tuesday roundup (03-26-13)

Europe Reels In Shock As Politician Tells The Truth (Forbes) Dijsselbloem forced to reassure markets about euro-zone banking: Euro group president issues statement after comments on change in banking policy cause market storm (The Irish Times) Portugal Finance Minister Fights Cyprus Bailout Template Remarks (FoxBusiness)

[Washington Post columnist Charles] Krauthammer compares Cyprus bailout to assassination that led to World War I (The Daily Caller)

Stricter Rules but Signs of Disarray in Cyprus Deal (The New York Times)

Cyprus readies capital controls to avert bank run (Reuters) In Cyprus, Big Losses Expected on Deposits (The New York Times)

SOCGEN: 'Depression For Cyprus' (The Business Insider)

Italian banks well capitalised but still face risks-IMF (Reuters)

Gloom enveloping Portugal as austerity drags on (Reuters)

Spain’s central bank offers grim forecast: more recession, higher unemployment (The Associated Press) Bank of Spain Says Recovery in Sight If Austerity Softened (Bloomberg)

Men in Black Seek Answers; Troika to Return to Spain in May Asking "What Happened to €42 Billion in ESM Bank Recapitalization Tranches?" (Mish's Global Economic Trend Analysis blog)

Osborne defends austerity, says on right track (Reuters)

Banks are best judge of their own capital, says [UK's] IEA: Banks should be allowed to decide themselves how much capital they need to hold instead of being told by regulators, according to a report by the Institute of Economic Affairs. [?!?!!] (The Telegraph)

Mr Yen cautions on Japan's 'unsafe' debt trajectory: Japan's public debt has reached worrying levels and could lead to a bond buyers' strike unless the government brings the budget deficit under control, the country's top currency official has warned. (The Telegraph)

China’s Debt Crisis Looms, Economists Say (The Epoch Times)

Canada’s big banks told to hold more capital on books by 2016 (The Globe and Mail of Toronto)

[US] Home Prices Growing As Fast As Before The Housing Collapse: Case-Shiller (Forbes)

The Five Ways Deflation Has Already Taken Hold (Bloomberg)

If Alan Greenspan Wants To 'End The Fed', Times Must Be Changing (Forbes)

Why Congress Won't Act on 'Too Big to Fail' (NationalJournal)

The London Whale and the real link between the US economy and Cyprus: Washington policy-makers say the deficit is the greatest threat to the US economy. In reality, it's the failure of banking reform by Dean Baker (The Guardian)

Citigroup's Money Laundering Controls Must Be Improved: Fed (The Huffington Post blog)

GSE Investigation Into Force-Placed Insurance (finally) (The Big Picture blog)

EPA: More than half of rivers, streams have poor living conditions for aquatic species (Minnesota Public Radio)

BNP Paribas Fortis to Cut 1,800 Jobs, Close 150 Branches (Dow Jones Newswires)

Newfoundland cutting 1,200 government jobs in face of $564-million deficit (Canadian Press)

Supervalu to Cut 1,100 Jobs to Trim Costs as Sales Fall (Bloomberg)

     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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