Monday, June 3, 2013

Monday roundup (06-03-13)

Global shock as manufacturing contracts in US and China: Manufacturing has begun to contract in the US and China for the first time since the Lehman crisis, raising fears of a synchronized downturn in the world’s two largest economies. (The Telegraph)

Global economy balanced on a pinhead (Marketwatch)

Draghi: ‘Few signs’ of stabilization in euro zone (Marketwatch) European Central Bank chief sees 'very gradual' Eurozone recovery (The Los Angeles Times)

Talk of recovery in Greece is premature – and all about justifying austerity: Bank bosses and politicians are trying to convince the world that Greece is on the mend – but this boosterism is all about justifying the shock therapy imposed on the eurozone (The Guardian)

Troika still concerned by Spanish banking and property sectors: European Commission says ‘programme remains on track’ (The Irish Times)

[US] Manufacturing Contracts Most Since 2009 (The Mess That Greenspan Made blog)

Don't be fooled by the false economic recovery: We all want to believe a recovery is here, but indicators are that it's not. We're getting swindled again by banks and politicians (The Guardian) Housing Recovery Is a Sham Says the Guardian’s Heidi Moore (Yahoo!'s The Daily Ticker)

Fed's Yellen open to doing more on too-big-to-fail (Marketwatch)

The day John Dingell predicted ‘too big to fail’ (The News-Herald of Southgate, MI) Too Big to Fail?: In a speech on the Floor of the House of Representatives in 1999, Congressman Dingell warns against repealing the Glass-Steagall Act of 1933. He argues that repealing the law would allow banks to become "too big to fail," which would cause instability in financial system. Nonetheless, Congress repealed the law and the nation suffered the tragic consequences of the 2008 financial crisis about a decade later. (Youtube)

Warning: ‘Prepare’ for Commodity Supercycle End (CNBC)

Zynga lays off 18% of staff [= 520 workers] (CNNMoney)

     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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