Monday, April 8, 2013

Monday roundup (04-08-13)

Portugal's top court has ruled out euro membership: Whether Portugal's judges realise it or not, they have just ruled that the eurozone doctrine of "internal devaluation" is unconstitutional. (The Telegraph)

Portugal austerity plan frays, US loses patience with Europe: Fitch Ratings has warned that Portugal’s austerity plan risks unravelling after the country’s top court struck down wage cuts and lower pensions for state workers. (The Telegraph)

The Real Cyprus Template (the one you're not supposed to notice) by Charles Hugh Smith (Of Two Minds blog)

Ex-Prime Minister Baroness Thatcher dies, aged 87 (The BBC) Margaret Thatcher’s legacy for business and economics — the world weighs in [Quartz via] (Yahoo! Finance) Thatcher and Reagan: The Iron Lady Was Tougher Than the Gipper: The two leaders were fast friends, but Thatcher faced a more dire challenge -- and she addressed it without Reagan's aw-shucks charm. (The Atlantic) Reagan and Thatcher: 'Political soulmates' (CNN)

Mervyn King was 'complacent' about banking crisis, book claims: Sir Mervyn King, Governor of the Bank of England, arrogantly believed the UK could “easily weather” a banking crisis as the storm gathered in the summer of 2007, according to a new book. (The Telegraph)

Report: [US] Consumers' Faith in Economy Slumps Even as Housing Recovery Strengthens (U.S. News & World Report blogs)

Inequality – Both Economic and In Access to Liberty And Justice – Skyrockets to Historic Levels [Washington's Blog via] (The Big Picture blog)

Why US Jobs Market Is Going to Get a Lot Worse (CNBC) Vanishing workforce weighs on growth (The Washington Post)

Pension underfunding grows despite U.S. market rally: study (Reuters)

Shodan: The scariest search engine on the Internet (CNNMoney)

Australia's GM Holden cuts 500 jobs, blames high currency (Reuters)

     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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