Debt & Financial Instability (1 of 3)

[NathanZackery]

Hmm, I used to be an strong believer of Austrian economics, but after watching this video I am starting to seriously doubt it. Perhaps 'post-Keynesianism' is the way forward?

[vteam02]

Friedman is part of the Chicago school, not Austrian

[SatchmoSings]

NathanZackery--

You, a believer in the Austrian School?

I find that rather hard to believe!

[canaan1967]

What does "securitization of loans" mean? Is it the same as secured as in collateral?

[MensRifleAssociation]

awesome - thx 4 posting.

[barrymarshall]

I first saw this video at the Debt Deflation blog. Steve Keen seems to be the man of the moment. His explanation of how enormous levels of debt have been created is by far the most convincing.

Thanks for reposting.

[RevolutionaryJam]

I find it hard to ascertain exactly what this bro is saying, to what degree does he agree with keynes and to what degree does he agree with the Mises Institute or does he think they're both wrong?

[yeahwotevaman]

He's obviously not a Mises fan.

[dionhenderson]

This guy is a Keynesian for gods sake. He says "the disease is debt levels". WRONG The disease is loose monetary policy which lead to people borrowing too much money.

Central banking is responsible.

That fancy doctorate couldn't buy Steven Keen common sense.

[shankyxyz]

of all economists across the world he has to have the best record.and you claim he doesnt have common sense?he is one if 13 economists who insisted that there would be deflation. did ur hero peter schiff get it right?

[dionhenderson]

Actually yes. Short term deflation, long term inflation was the Austrian prediction.

It means nothing, this is only short term. People go broke, they can't pay the prices, of course deflation occurs.

Inflation is rampant in food prices in Australia and also most importantly the stock market.

Inflation and deflation occurs all the time in different sectors of an economy. If you look overall, the inflation in the stockmarket far outweighs any deflation in asset prices. :-)

[shankyxyz]

well in the long term, as Kaynes said " We are all dead". the schiffs of this world have been predicting collapse of dollar for years now. what does it mean if you are right in the very long term but never right on any other time scale. such predictions in my opinion are useless. the more important thing is that most austrians did not predict deflation.

[markiz2001]

The entire education system is flawed. It is based on indoctrination. It's purpose is to create naive and obedient citizens, remove critical thinking and replace it with authoritarian thinking, and to train a managerial class which serves the power structure and controls the people

The economists were not taught "how the economy works", they were taught propaganda justifying the current economic system/policy

since they were taught wrong, their predictions are also always wrong

simple as that

[ragp1cker]

@markiz2001 Say what? Steve Keen is an economist. So was Minsky. Keynesian Economics IS a mainstream flavor. The problem isn't with the subject. It's with people who expect it to predict crises. One can identify risk factors and warn that a crisis MAY be about to happen. But that's about it. And economists are wrong about the future quite often. Otherwise they'd all be millionaires. Would you expect a sociologist to have predicted the London Riots ahead of time?

[mojorhythm]

@ragp1cker Actually, what is called "Keynesian economics" these days bears almost no resemblance whatsoever to the original work of Keynes.

"New Keynesianism" is basically neoclassical economics with a little bit of price stickiness and tolerance of fiscal policies to increase demand.

[ragp1cker]

@mojorhythm Agreed. I was just pointing out that whatever school of economics you genuflect to, it won't give you precognitive powers.

[mojorhythm]

@ragp1cker Oh, yeah absolutely.

[01avin]

@markiz2001

Steve Keen is a nut job academic fuckwit who likes to see the world in a perfectionist view. Does not exist sadly. There are too many variables to measure it the way he does. What is his advice on what to do to succeed?

Nothing!

[01avin]

Respond to this video...

Steve Keen may as well stay in a cave and masturbate with his cheezel dick. Do you get any more negative than this guy?

What a geek, I used to beat up people like this at school.............LOSER!

Economic structures do not have a definitive measure it has been transforming chopping and changing over centuries. His trying to get media hype that's all. He's no different to any of those fuckin attention seekers out there.

[Slug99]

But the devil is one of gods angels.

[CaptainBluebear08]

@Slug99

'was'

[DiordnaDionaraP]

Damn i dont understand him with his accent.

T.T

[NamelessCommenter]

Debunking market fundamentalism FTW!

[kzargentina]

Very good.

[ThisBoyTV]

!st part is very good & will continue watching.

We made forecasts through 1998-2002 that a collapse was coming. We used the basic economic model of "supply and demand". We did factor in the "greed" side that was showing up in 2000.

[Antiks72]

Economics is not hard science. Krugman will bitch slap this guy all over the place. The greatest debt we've ever had was right at the end of WW 2. That kind of govt spending got us out of the Great Depression.

[shankyxyz]

lol dont make me laugh. this guy has a far better record than krugman. krugman didnt see anthing coming and spported nafta. plz.

[Antiks72]

No economist is 100 percent right about everything. Krugman was right about the housing bubble, and he's right about the stimulus. More is needed, and your libertarian Mises fantasies are bunk.

[shankyxyz]

what was krugman saying during the housing bubble. i read his articles frequently and he convinently speaks from both sides of his mouth so that noone can blame him for being wrong.absolutely no conviction.