Sunday, December 11, 2016

Sunday roundup (12-11-2016)

Monte dei Paschi of Siena tries to keep €5bn rescue plan alive: Italy’s third largest bank seeks to avoid government bailout with debt-for-equity swap offer to retail investors (The Guardian) Monte Paschi Proceeds With Capital Plan to Avoid State Rescue (Bloomberg) Monte dei Paschi to press ahead with last-ditch private capital increase (Reuters)

US debt is threat to the world, says Chinese state-run paper: People’s Daily commentary on Washington’s US$20 trillion federal debt is seen as a warning to incoming president Donald Trump (South China Morning 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 exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

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