Friday, May 17, 2013

Friday roundup (05-17-13)


Oil Price-Fixing Probe Widens as Neste Helps EU Inquiry (Bloomberg) Platts in lockdown as investigators continue oil probe (Reuters) Everything Is Rigged, Continued: European Commission Raids Oil Companies in Price-Fixing Probe by Matt Taibi (Rolling Stone blogs)

Cypriot Bailout Program Faces ‘Unusually High’ Risks, IMF Says (Bloomberg)

[US] Treasury Prepares to Take Measures to Avoid Default (CNBC)

Regulators seize small bank in Arizona [on Tuesday May 14]; brings this year’s US bank failures to 13 (The Washington Post) Central Arizona Bank of Scottsdale AZ had a troubled assets ratio of 165.9%. (BankTracker) Central Arizona Bank Fails – Third Bank Failure In A Week For Capitol Bancorp, Ltd (Problem Bank List) "A failure of any one bank subsidiary [of Capitol Bancorp] could trigger the failure of all banking subsidiaries" [of which nine now remain.] (Calculated Risk blog)

     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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