Saturday, May 4, 2013

Saturday roundup (05-04-13)

Threat to the eurozone is as strong as ever: The eurozone economy has contracted every single quarter since the end of 2011. During the first three months of 2013, the region's GDP shrank by a punishing 0.6pc, having fallen at a similar pace the quarter before. (The Telegraph)

[UK's] George Osborne to tell IMF that austerity U-turn would do damage: Chancellor is determined to resist pressure for greater boosts to growth in talks this week, arguing harm would outweigh benefits (The Observer)

Despite pickup in hiring and lower unemployment, the [US] economic recovery has a long way to go (The Associated Press)

Unofficial Problem Bank list declines to 773 Institutions (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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