Friday, April 12, 2013

Friday roundup (04-12-13

The Euro Zone Crisis Is Back—On Multiple Fronts (CNBC)

'The Crisis Isn't Over in the US or Europe': In a SPIEGEL interview, Harvard economist Carmen Reinhart argues governments are incapable of reducing their debts and that central banks are now stepping up to resolve the crisis themselves. In the end, she argues, everyday savers will pay the price. (Spiegel Online) Carmen Reinhart: "No Doubt. Our Pensions Are Screwed." (Zero Hedge blog) Why Europe’s Debt Crisis is Barely Getting Started (The Daily Reckoning)

Jim Rogers 'I Suspect They'll Take The Pension Plans Next' (Youtube)

Recapitalize European Banks Now: Expert: Dirk Schoenmaker, dean of the Duisenberg School of Finance, tells CNBC that European banks are weak and need to be recapitalized in order to kick-start the recovery. (CNBC)

Cyprus faces economic meltdown as EU-IMF refuses extra aid: Cyprus must take on an extra €5.5bn in the cost of its bail-out, a sum equivalent to a third of the island's annual GDP, without any additional help from the European Union and IMF. (The Telegraph) Confusion Over Cyprus' Bailout Funding Grows (CNBC) Cyprus causing fresh market pain as doubts grow over ability to meet bailout terms (Marketwatch) Euro ministers back 10 billion euro Cyprus bailout (Reuters)

Bailout Terms Are Eased for Ireland and Portugal (The New York Times)

Portugal’s elder statesman calls for 'Argentine-style' default: Portugal's leading elder statesman has called on the country to copy Argentina and default on its debt to avert economic collapse, a move that would lead to near certain ejection from the euro. (The Telegraph) Factbox: Portugal's painful austerity path - likely new spending cuts (Reuters)

Slovenia eyes bank sell-off, budget revision to avoid bailout (Reuters)

Chinese officials even more pessimistic on local debt than Fitch (Reuters)

U.S. to Press Japan to Refrain From Competitive Devaluation (Bloomberg)

Fed's Lockhart decries "agonizingly slow" recovery from crisis (Reuters)

Retail Sales in U.S. Decline by Most in Nine Months (Bloomberg)

April consumer sentiment hits nine-month low (Reuters)

Big Banks Attempt Secret Coup Against Cheap Loans [Washington's Blog via] (The Big Picture blog)

Don’t Depend on Bank Deposit Insurance: Mike Shedlock (Yahoo!'s The Daily Ticker)

In Financial Reform, Keep It Simple Like Glass-Steagall (Bloomberg)

A taxpayer bailout may be needed at FHA (CNN Radio)

What Student Debt Is Doing to the Economy and a Generation (ABCNews)

     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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