Friday, August 23, 2013

Friday roundup (08-23-13)

Former ECB policymaker says euro zone crisis may flare up again (Reuters)

'Abysmal' Dutch economy threatens euro zone recovery (CNBC)

Italian coalition close to breaking point over Berlusconi fate (Reuters)

U.S. Growth Rate Worse Since Recovery (Forbes)

U.S. new home sales fall sharply; house prices rise (Reuters)

Glass-Steagall Critics Get a Little Bit Right and the Rest All Wrong (U. S. News & World Report blogs)

Regulators close small banks in Tennessee, Arizona; puts this year’s US bank failures at 20 (The Associated Press)

Sunrise Bank of Arizona of Phoenix AZ had a troubled assets ratio of 207.2%. (BankTracker)

Community South Bank of Parsons TN had a troubled assets ratio of 529.2%. (BankTracker) Community South Bank, TN, Becomes Second Largest Bank Failure of 2013 (Problem Bank List)

     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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