Saturday, April 20, 2013

Saturday roundup (04-20-13)

IMF calls for more action to spur global economic recovery (Reuters)

EU Rebuts Austerity-Obsessed Image, Defends Growth Plans (Bloomberg)

Wage Deflation Next for the Euro Zone (Global Economic Intersection)

Deficit-cutting is European, not German policy: Schaeuble (Agence France Presse)

Greece may get bailout cash advance to pay bills - reports (Reuters)

IMF steps up call for Osborne to slow down austerity plans as row escalates: A row between George Osborne and the International Monetary Fund over Britain’s economic strategy has escalated after the fund’s deputy managing director joined those urging the Chancellor to consider slowing down his austerity plans. (The Telegraph) George Osborne's austerity plan has slashed more than £830 a year from workers' pay packets: New figures show the average weekly pay packet was £464 in February – compared to £480 in the same month last year (The Mirror)

Forecasters warn of 'triple dip' recession: George Osborne is bracing himself for more grim economic news with figures expected to show this week that Britain has lurched into its first “triple dip” recession. (The Telegraph)

At the Royal Bank of Scotland, the business of rescuing the world’s worst bank (The Washington Post)

[In the United States] Drought Worsens, Scorching Much of the Country (CNBC)

‘Catastrophic’ budget laid out by Philly schools (The Philadelphia Inquirer)

Unofficial Problem Bank list declines to 781 Institutions (Calculated Risk blog)

Chipola Community Bank, FL, Closed By Regulators [see yesterday's Economic Signs of the Times blog] (Problem Bank List)

A Turning Point: Defining the Financial Structure; [speech by] Thomas M. Hoenig, Vice Chairman, Federal Deposit Insurance Corporation presented to 22nd Annual Hyman P. Minsky Conference at the Levy Economics Institute of Bard College; New York, NY -- "... the actions of two presidents stand out as our country determines how to define the structure and role of the financial system going forward. President Teddy Roosevelt, the trust buster, changed the competitive landscape of America for the good. President Franklin Roosevelt enacted the Glass-Steagall Act, from which coincided with decades of relative economic stability and financial growth." (The Federal Deposit Insurance Corporation)

Big Banks and "The Number": A government watchdog agency is calculating the size of the implicit regulatory subsidy enjoyed by banks deemed too big to fail [= "The Number"]. It could lead to legislation requiring the banks to bolster their capital cushions. (Barron's)

Windows 8 says goodbye to the Start button: Microsoft's newest OS contains the biggest changes seen since Windows 95, including a completely new interface and no more 'Start' button. [off topic ... obviously] (CNN Money)

     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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