Friday, August 30, 2013

Friday roundup (08-30-13)

EU unemployment steady at record 12% (Agence France-Presse)

Worldwide loss of oil supply heightens Syria attack risk: Libya's oil output has crashed to a near standstill over the past year as warlords and strikes paralyse the country, tightening the screws on global crude supply as the crisis in Syria comes to a head. (The Telegraph)

Bank of England: consumers turn to loans, credit cards and overdrafts: Data shows 3.5% annual increase in consumer credit, showing shoppers' willingness to turn to costly borrowing ["to maintain their standard of living in the face of falling real wages"] (The Guardian)

India GDP growth slows more than expected: Third straight quarter of sub-5% growth (Marketwatch)

India pushes 'shock and awe’ currency plan to save BRICS: India is pushing for joint “shock-and-awe” intervention by key developing states to halt capital flight and shore up currencies, in a move that risks backfiring and triggering a vicious spiral. (The Telegraph)

Markets Are Saying [US] Economic Recovery Has Peaked (Forbes)

Billions exit bank accounts after years of inflows (CNBC)

Fiat plans to extend layoffs for 5,300 Mirafiori factory workers, report says (Bloomberg)

South Africa's Amplats cuts 4,800 jobs (Reuters)

DELL TO SLASH OVER 1,000 ENTERPRISE JOBS [in India] (CBROnline)

Bank of America to slash 1,000 jobs in Ohio: Mortgage and consumer banking unit impacted (Housing Wire)

Broomfield's Level 3 cuts 700 jobs worldwide, including 150 in Colorado (The Denver Post)

     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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