Tuesday, June 4, 2013

Tuesday roundup (06-04-13)

PIMCO's Gross says stimulus measures stunting [Western] business growth (Reuters)

There’s a worse crisis on the way [in the UK] unless we get serious about tackling debt: For all of the talk of austerity, Britain is still drowning in debt, private as well as public. (The Telegraph)

ALBERT EDWARDS: I Cannot Suppress My Anger Any More, The UK Is Putting Young People Into Indentured Servitude (The Business Insider)

Japan's 20 years of struggle hold a warning to other economies: The state can provide palliative care in a crisis but it may have limited ability to restore financial health by Satyajit Das (The Independent)

Meredith Whitney: State finances are worse than estimated [in the United States] (Fortune)

Whale of a Trade Revealed at Biggest U.S. Bank With Best Control (Bloomberg) JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses (US Senate Committee on Homeland Security & Governmental Affairs)

Financial Regulators Turn Their Focus To Non-Banks (PBS Frontline) Better Late Than Never on Deeming Nonbanks Too Big to Fail (The New York Times blogs) U.S. regulators propose new oversight of AIG, Prudential (Reuters)

Behind the Rise in House Prices, Wall Street Buyers [The New York Times via] (CNBC) Fresh fear over US sub-prime lending: America's sub-prime mortgage market is beginning to reheat, leading investors to warn of the possibility of a renewed financial crisis. (The Telegraph) Banks loosen standards on down payments: Average down payment dropped to 16.1% last month, one survey finds (Marketwatch)

Where are the entrepreneurs? More evidence the very heart of the US economy is failing (American Enterprise Institute)

Former Reagan Budget Director Argues Against Bailouts, for Financial Discipline (PBS Newshour)

Kansas wheat farmer sues Monsanto over rogue wheat release (Reuters)

'Amazing' Oklahoma tornado was largest in U.S. history (The Los Angeles Times)

     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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