Econintersect: Steve Keen, one of the few economists who clearly identified the credit crisis in advance and, in early 2005, specifically predicted the approximate date of onset of the Great Financial Crisis (GFC) which came 3 1/2 years later. He did this because he was modeling the economy using the parameters of money and credit. You might be saying: “Duh, didn’t everybody?” Well, no! Standard acceptable economic theory assumes money and credit are economic lubricants and simply available as needed. European economist Dirk Bezemer identified the lack of having money and credit in economic models as the primary failure of mainstream economics (Lounsbury, 2010). Steve Keen was interviewed this week on the RT program The Big Picture with Thom Hartmann in “Conversations with Great Minds” which can be viewed after the Read more >> jump. Keen discussed why private debt is the big problem for the economy and not public debt.
Steve Keen interview starts at approximately 30 minutes and is the second half of the program. In this discussion he describes the process he would recommend rather than the bank deposit confiscations in Cyprus and other theft by banksters.
Special notice: Global Economic Intersection recommends you consider supporting the Kickstarter campaign of Steve Keen to keep his efforts to develop the “best macro modeling tool ever” moving forward in the absence of university affiliation. GEI Managing Editor John Lounsbury has made a contribution and explained why. GEI News has been following the progress of the Kickstarter campaign. To get an in depth review by Steve himself (and to make a pledge) go to the Minsky Kickstarter page.
- Twelve Who Forecast the Financial Crisis (John Lounsbury, GEI Analysis, 20 November 2010)
- The Big Picture with Thom Hartmann (RT TV, 16 March 2013)
- Kickstarter Minsky Program links in Special notice.