Sunday, June 2, 2013

Sunday roundup (06-02-13)

Austerity backlash forcing Europe to soften budget cuts (CNBC)

BIS records startling collapse of eurozone interbank loans: Cross-border lending is falling drastically across the western world as banks slash exposure to Europe and bend to tougher capital rules, according to data from the Bank for International Settlements. (The Telegraph)

Merkel reins in plan to transfer powers to Brussels (Reuters)

Greece's creditors close to writing off some of its debt: IMF chief and head of Eurogroup drop hints that international community may consider lightening nation's debt load (The Guardian)

Sir Mervyn King: Public are right to be angry at banks (The BBC)

Ponzi Central Bankers Gone Wild, Japan Exporting Deflation by John Mauldin (The Market Oracle)

    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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