Friday, June 21, 2013

Friday roundup (06-21-13)

Another shameful day for Europe as EMU creditor states betray South: So much for the denials. The Cyprus "template" for banking crises is to be eurozone policy for other countries after all. (The Telegraph)

Creeping mistrust stops euro zone banks lending to peers across bloc (Reuters)

Indebted eurozone countries see borrowing costs rise on Fed statement (The Associated Press)

Greek debt costs surge on government collapse (Deutsche Welle) Greek government on knife edge as coalition party pulls out: Greece’s troubled coalition government lay in tatters on Friday after a leftist partner withdrew from the alliance amid a crisis over the sudden shutdown of the country’s state broadcaster. (The Telegraph)

In new dynamic, Portugal's former colonies bail out old master (The Christian Science Monitor)

Mervyn King picks up £6.3m pension from Bank of England despite not putting penny in pot: He will enjoy bumper annual increases – unlike millions of ordinary Britons whose packages have been hit by cuts (The Mirror) Anger as former Bank of England Governor Sir Mervyn King walks away with £6.3million pot (The Express)

[In the US:] Bernanke bond announcement 'inappropriately timed:' Fed's Bullard (Reuters)

Big Banks' Capital Requirements Should Be Doubled, Regulators Say [Reuters via] (The Huffington Post)

The Last Mystery of the Financial Crisis: It's long been suspected that ratings agencies like Moody's and Standard & Poor's helped trigger the meltdown. A new trove of embarrassing documents shows how they did it by Matt Taibi (Rolling Stone)

Illinois' finances worst ever in FY 2012 - auditor (Reuters)

Navy Announces Layoffs for 745 Civilians (Government Executive)

     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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