Home > real-world economics review > RWER issue 57: Steve Keen2

RWER issue 57: Steve Keen2

The Return of the Bear

Steve Keen  

Far be it from me to underestimate the stock market’s capacity to pluck the embers of delusion from the fire of reality. However, the crash in prices and explosion in volatility that began in late July 2011 may be evidence that sanity is finally making a comeback. What many hoped was a new Bull Market from the depths of the 52% crash from October 2007 till March 2009 was instead a classic Bear Market rally, fuelled by the market’s capacity for self-delusion, accelerating private debt, and—thanks to QE2—an ample supply of government-created liquidity. The 85% rise from March 2009 till April 2011 was enough to restore Wall Street’s euphoria, but still fell short of the 110% rally needed to restore the 2007 peak.

You may download the whole paper at: http://www.paecon.net/PAEReview/issue57/Keen2-57.pdf

 

 

About these ads
  1. No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 9,516 other followers