Archive for the ‘debt’ Category

Why Don’t the Deficit Hawks Want to Tax Wall Street?

September 29, 2011 4 comments

from Dean Baker

The intensity with which the country’s leading deficit hawks continue to ignore financial speculation taxes (FST) is getting ever more entertaining. While deficit hawks like Wall Street investment banker Peter Peterson, Morgan Stanley director Erskine Bowles, and the Washington Post never tire of preaching the virtues of shared sacrifice, somehow sacrifice for Wall Street never features as a part of this story. Read more…

Debate: The US Economy post the 2008 Crash

August 23, 2011 2 comments

from Steve Keen

The ABC Radio National program Rear Vision is a current affairs program that presents “contemporary events and people in their historical context”.

I was recently interviewed by Rear Vision for a retrospective on the crisis, entitled “Here we go again: A look at the US economy post the 2008 GFC crash” which debated why the crisis is still with us today.

Other speakers were Ed Harrison from Credit Writedowns, with whom I’m very much in agreement, economic historian Richard Sylla from New York University, and Steve Hanke from John Hopkins with whom I almost completely disagree.  Read more…

Sense from Krugman on private debt

August 19, 2011 6 comments

from Steve Keen

I was highly critical of Paul Krugman’s recent academic paper on the financial crisis, because it argued, on neoclassical a priori grounds, that:

Ignoring the foreign component, or looking at the world as a whole, the overall level of debt makes no difference to aggregate net worth — one person’s liability is another person’s asset. (p. 3)

Given that criticism, I feel obliged to point out that in his recent comment on Rick Perry’s nomination for the Presidency, “The Texas Unmiracle”, Krugman makes a very sensible observation about the importance of “the overall level of debt” that contradicts the assumption he made in that paper. Read more…