Tuesday, May 21, 2013

Tuesday roundup (05-21-13)

Europe faces lost decade, says [incoming Bank of England governor] Mark Carney: Mark Carney, the incoming Bank of England Governor, has warned that Europe could face a decade of stagnation unless it takes the kind of bold measures seen in Japan. (The Telegraph) Carney issues warning to Europe about economy (The Globe and Mail of Toronto)

Fed’s Bullard Says ECB Needs ‘Aggressive’ QE to Avoid Japan Fate (Bloomberg) Fed's Bullard recommends euro zone consider quantitative easing ["to counter slowing inflation and recession"] (Reuters) Monetary Policy Options in a Low Policy Rate Environment by James Bullard (The Federal Reserve Bank of St. Louis)

[Italy's Prime Minister] Letta tells EU to change or 'implode': Premier addresses parliament on eve of European debut (ANSA)

Will IMF repeat its anti-austerity call [to the UK]?: George Osborne has been doing his utmost to get the IMF mission to change its view during talks over the past fortnight (The Guardian blogs)

Mark Carney warns Europe against lost decade of austerity: Fall in UK consumer prices index gives incoming Bank of England governor room to manoeuvre (The Guardian) Why falling inflation matters: A drop in inflation eases the squeeze on consumer real incomes by reducing the gap between price increases and wage increases (The Guardian blogs)

Kyle Bass Commissioned A Poll That Confirmed To Him That Japan Is Going To Implode (The Business Insider)

[US] Banks still want bailouts [editorial] (The Philadelphia Inquirer)

Elizabeth Warren Asks New Treasury Secretary If He'll Be As Bad On Big Banks As The Old One (VIDEO) (The Huffington Post)

Medtronic cutting 2,000 jobs worldwide, 500 in Minnesota (The Star Tribune of Minneapolis MN)

NetApp to lay off 900, including some employees in RTP (The News Observer of Raleigh, NC)

     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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