Wednesday, June 5, 2013

Wednesday roundup (06-05-13)

Emerging markets displace Europe as fulcrum of world risk: There is a wicked double edge to the emerging-market boom that has so enthralled us for the past decade. The economies of these rising powers are by now big enough to shake the entire world if they come off the rails. (The Telegraph)

Euro zone services sector contracts faster than anticipated: Survey suggests euro zone’s recession will continue (The Irish Times)

IMF admits: we failed to realise the damage austerity would do to Greece: Athens officials react to report with glee, saying it confirms that the price extracted for country's bailout package was too high (The Guardian)

UCLA Anderson Forecast paints dismal picture of economic recovery [in the United States]: "It's not a recovery. It's not even normal growth. It's bad," UCLA economist Edward Leamer says. (The Los Angeles Times)

Endo Health to cut 15 pct jobs [about 695 jobs], explore options for two units (Reuters)

State Farm call center to consolidate positions, 600 jobs affected (KFOX)

     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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