Wednesday, April 17, 2013

Wednesday roundup (04-17-13)

EU banks need to reduce size of their debt by £1TRILLION, warns IMF (The Daily Mail) IMF: Euro-zone companies face massive ‘debt overhang’ (The Washington Post)

Bundesbank’s Weidmann: Debt-crisis recovery will take years: Comments contrast with EU president, who says worst is over (MarketWatch)

ECB chief Draghi says eurozone governments must press on with creating full banking union (The Associated Press)

France plans spending cuts as fiscal targets slip (Reuters)

Italy May Need $9.2 Billion of Spending Cuts, Official Says (Bloomberg)

Plan for new Cyprus vote casts uncertainty on bailout (Reuters) Cyprus central bank failed in its job, president tells ECB (Reuters)

Fed and Bank of Japan caused gold crash: Commodity prices have been falling since September, culminating in a rout over the past two weeks. That is a classic warning for the global economy. (The Telegraph)

High student debt is dragging down the U.S. economy (The Washington Post blogs) How Student Debt Is Holding Back The Housing Market (Think Progress)

Insider Trading in Our Nation's Capital Just Got Easier (CNBC)

Small Banks Will Benefit From Big-Bank Breakup (American Banker)

A Study That Set the Tone for Austerity Is Challenged (The New York Times blogs) Error Sparks Austerity Debate (CNBC) Is the evidence for austerity based on an Excel spreadsheet error? (The Washington Post blogs) REINHART AND ROGOFF: 'Full Stop,' We Made A Microsoft Excel Blunder In Our Debt Study, And It Makes A Difference (The Business Insider) Influential economists acknowledge errors in debt paper (Reuters) Did Harvard Economists Make an Excel Error that Led to Economic Austerity? (Yahoo!'s The Daily Ticker)

Greece to Cut 15,000 Jobs as Part of Bailout Terms [Benzinga via] (International Business Times)

Job centres to slash 4,000 jobs [in the Netherlands] (Dutch News)

Air Force cutting 1,000 civilian jobs; hopes to transfer workers to open positions (Stars and Stripes)

     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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