Saturday, August 3, 2013

Saturday roundup (08-03-13)

Jobs Recovery in Europe Is Also Painfully Slow (The New York Times)

Berlusconi aides push for presidential pardon for convicted leader; others fear ‘civil war’ (The Associated Press) Tensione Pdl-Pd, Bondi evoca la guerra civile: Ma il Colle non ci sta: «Parole irresponsabili» Il senatore invoca la grazia, mentre la Lega chiede il ritorno alle urne. L'intervento di Letta: «Niente ricatti al Quirinale» (Corriere della Sera)

Bank of England gives lenders six years to plug £121bn black hole: British banks have been given six years by the Bank of England to plug a £121bn capital shortfall in order to meet tough European rules. (The Telegraph)

Challenge of turning off America's 'loose money' tap: Just at the point when the Bank of England is thinking about introducing so-called “forward guidance” – in effect, a promise to keep the monetary taps open until there is a measurable and sustainable improvement in economic growth – the US Federal Reserve is considering doing exactly the opposite. (The Telegraph)

Unofficial Problem Bank list declines to 726 Institutions (Calculated Risk blog)

Feds Close First Community Bank of Southwest Florida – 17th Bank Failure of 2013 [as posted here yesterday] (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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