Thursday, August 22, 2013

Thursday roundup (08-22-13)

Jens Weidmann slams 'reckless' talk of euro break-up as Greece bail-out debate intensifies: A break-up of the eurozone would have “grave consequences”, the head of Germany’s central bank has warned, while talk of a third bail-out for Greece has intensified. (The Telegraph)

Emerging market rout threatens wider global economy: The $9 trillion (£5.8 trillion) accumulation of foreign bonds by the rising powers of Asia, Latin America and the emerging world risks going into reverse as one country after another is forced to liquidate holdings to shore up its currency, threatening to inflict a credit shock on the global economy. (The Telegraph)

Eurogroup chief becomes latest to admit Greece on course for third bailout: Jeroen Dijsselbloem's comments cast shadow over news that eurozone companies are reporting strong growth (The Guardian) Third bailout for debt-laden Greece 'inevitable', Eurogroup chief concedes (This is Money)

Cyprus Bank’s Bailout Hands Ownership to Russian Plutocrats (The New York Times)

[In the US] Household income has dropped 4.4% since recession ended (The Los Angeles Times) Report: Household income below end-of-recession (The Associated Press)

FPL, sister company eliminating 1,000 jobs (The Miami Herald)

     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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