Monday, July 29, 2013

Monday roundup (07-29-13)

ECB will soon need to help France: Juergen Stark (CNBC) „Die Euro-Krise wird sich im Spätherbst zuspitzen“: Vor einem Jahr kündigte EZB-Chef Draghi an, alles zu tun, um den Euro zu retten. Der frühere EZB-Chefvolkswirt Jürgen Stark hält dies für fatal. Er fürchtet, dass die EZB bald Frankreich mit Anleihekäufen stützen muss. (Handelsblatt)

Is the net closing in on 'Houdini' Berlusconi? (CNBC) [This, in turn, raises the question:] Will Italy's Prime Minister Be Around Much Longer? (U. S. News & World Report blogs)

China to audit local authorities and state enterprises over debt fears: Nationwide assessment of borrowing underlines concern that public bodies are close to collapse (The Guardian)

Is Another Recession Looming [for the US]? (Forbes)

Whitney: High Interest Rates Will “Trigger a Real Downsizing” for Cities: The Daily Ticker's Aaron Task asks Meredith Whitney how Detroit's bankruptcy will impact the muni bond market. (Yahoo!'s The Daily Ticker)

     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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