Friday, June 14, 2013

Friday roundup (06-14-13)

Europe rethinks its pursuit of austerity: European Union leaders are beginning to acknowledge that cutting spending too much too fast to solve the continent's debt crisis is crippling nations. (The Los Angeles Times)

Spain's Debt Reaches New High (The Voice of America)

Italy's public debt hits new record of 2.041 trillion: Up 52.6 bln from end 2012 and by 83.3 bln on 12 months ago (ANSA)

Italy sees no more fiscal tightening despite deficit problems (Reuters)

China braces for capital flight and debt stress as Fed tightens: China appears increasingly worried that monetary tightening by the US Federal Reserve could trigger capital flight from the People’s Republic and set off a Chinese corporate debt crisis. (The Telegraph) China's credit is literally off the charts (The Telegraph blogs)

IMF warns U.S. not to scale back stimulus too soon: The International Monetary Fund also criticizes U.S. fiscal policy, calling for the repeal of automatic spending cuts known as the sequester. (The Los Angeles Times)

Housing bubble: The "Wealth" is Gone, but the Debt Remains (Calculated Risk blog) Younger Households Are Slower to Make Gains in Net Worth (The New York Times)

Young Americans are ditching credit cards (CNNMoney)

On the brink, Detroit halts debt payments, plans pension cuts (CNNMoney) Emergency Manager: Detroit Won't Pay $2.5B It Owes (The Associated Press) Painful Options Ahead: Detroit to Default on $2.5 Billion Debt: The city of Detroit is facing difficult decisions in the face of billions of dollars of debt. Emergency manager Kevyn Orr laid out a last-ditch plan to 150 creditors to accept pennies on the dollar to keep the city running. Some residents are skeptical of Orr's approach. Ray Suarez talks to Matt Helms of the Detroit Free Press. (PBS NewsHour)

What FDR Hated About Glass-Steagall (Bloomberg)

     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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