Friday, April 19, 2013

Friday roundup (04-19-13)


G20 backs off austerity drive, rejects hard debt cut targets (Reuters)

Greece, Cyprus May Be Forced to Exit Euro: Citi (CNBC)

Fitch cuts UK credit rating on 'weaker economic and fiscal outlook': Britain has been stripped of its AAA credit rating by a second rating agency as a result of poor growth. (The Telegraph)

Regulators close small lenders in Florida, Kentucky; brings US bank failures this year to 8 (The Associated Press)

First Federal Bank of Lexington KY had a troubled assets ratio of 354.2%. (BankTracker) First Federal Bank, Lexington, KY, Closed By Feds (Problem Bank List)

Heritage Bank of North Florida of Orange Park FL had a troubled assets ratio of 441.4%. (BankTracker) Heritage Bank of North Florida, FL, Shuttered By Regulators (Problem Bank List)

Chipola Community Bank of Marianna FL had a troubled assets ratio of 278.4%. (BankTracker) [Problem Bank List story for this bank was not available at time of posting.]

     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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