Monday, August 12, 2013

Monday roundup (08-12-13)

Quote of the Day: "... how do we get inflation when the economy remains soft -- and unemployment relatively high? The idea that bond buying would destabilize inflation expectations has been proved completely incorrect. And repeated predictions that the economy would bounce back so fast that it would instantly overheat have also proved substantially off-target." -- MIT economist Simon Johnson (PBSNewshour)

So you think Europe's debt crisis is finally over? Time to think again: One of the factors underpinning renewed confidence in the UK economy is the belief that the crisis in Europe is now essentially over. (The Telegraph)

France is the biggest concern in Europe: Fed’s Fisher (CNBC)

Italy: Public debt reaches new record high of €2.075 trillion in June (ADNKronos)

Greece: A Primary Budget Surplus, Depression Continues (Calculated Risk blog) Greece stuck in recession, bailout targets at risk (Reuters)

'Life is harder' for UK workers as wages slide (CNBC)

[Ireland's] Ryanair pilots raise safety concerns [The Financial Times via] (CNBC)

Economic Expansion Slows Down in Japan (The New York Times) With a quadrillion in debt, there’s only one way out for Japan (Quartz)

Japan Is About To Repeat A Fiscal Mistake That Sent The Economy Into Deflation In 1997 (The Business Insider)

How Fast Can China Grow? Not as Fast as Most Analysts Think (Mish's Global Economic Trend Analysis blog)

China's real estate bubble: China's economy has become the second largest in the world, but its rapid growth may have created the largest housing bubble in history. Lesley Stahl reports. (CBSNews 60 Minutes)



The Fed Needs a Wall Street Watchdog at the Helm (U. S. News & World Report)

Federal Reserve Warns Leveraged ETFs Could Trigger 1987-Style "Cascade" In Stocks (Cliff Küle's Notes blog)

Micron to cut 1,500 workers after Elpida purchase (KTVB)

     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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