Financial Hocus-Pocus? From managed fund to bank?

Published in October 31st, 2008

Posted by Steve Keen in Uncategorized

The suggestion that the Federal Government might extend its guarantee to managed funds in return for the funds becoming banks is, as Glenn Dyer has observed for Crikey, sheer bunkum.
On the lender side, this sector of the finance industry largely arose to make money out of lending practices or financial products that were too adventurous [...]

I couldn’t have put it better myself

Published in October 29th, 2008

Posted by Steve Keen in Uncategorized

41 Comments

There’s an excellent article in The Age today on the mad methods of neoclassical economists. The author is Martin Feil, who was once a director of the Industries Assistance Commission–a previous incarnation of what is now called the Productivity Commission:
The article is entitled We can’t live on moonbeams and air.
I plan to tackle similar issues in my [...]

Play the ball and not the man

Published in October 21st, 2008

Posted by Steve Keen in Uncategorized

94 Comments

The import of Gerard Henderson’s diatribe in today’s SMH is that the media has done a “soft” job on my views, which have only gained notoriety because of the extreme prediction I have made—about the forthcoming economic downturn qualifying as not merely a recession, but a Depression. It seems I’ve only got attention because of [...]

Rescuing the Economy or the Bubble?

Published in October 19th, 2008

Posted by Steve Keen in Uncategorized

107 Comments

Many elements of the recently announced package are justified. When the economy is about to go into a debt-induced recession, government spending both boosts demand, and provides the private sector with cash flow needed to meet its debt repayment commitments.
Equally vital was the guarantee of all bank deposits. A run on the banks would be [...]

The Panic of 2008

Published in October 11th, 2008

Posted by Steve Keen in Uncategorized

115 Comments

This week, financial markets truly succumbed to The Panic. The US Dow Jones and S&P500 Indices lost 21%; Australia’s All Ordinaries fell 16%. “Buy and Hold” gave way to “Get Out At All Costs”.
When we look back with the eyes of history, the ninth day of the tenth month of 2008 will be the Black [...]

Debtwatch 27 October 08: The Failure of Central Banks

Published in October 6th, 2008

Posted by Steve Keen in Australia, Debtwatch, RBA, USA

69 Comments

Just two years ago, Central Banks appeared triumphant. Inflation, the scourge of the 1970s and 80s, appeared dead, the financial crisis of the Tech Wreck had been contained, economies worldwide were booming, and stock markets and house prices were spiralling ever upwards.
Then along came the Subprime Crisis, and we received a rude reminder of why [...]

Media this weekend

Published in October 3rd, 2008

Posted by Steve Keen in Uncategorized

23 Comments

Just a quick heads up to all blog readers that I’ll be on Channel Ten’s “Meet the Press” on Sunday morning at 8am, and Channel Nine’s “60 Minutes” on Sunday evening at 8.30pm.

Curses! Foiled Again!

Published in October 1st, 2008

Posted by Steve Keen in Uncategorized

62 Comments

You all know the movie plot: the Evil Scientist has laced the town’s water supply with a poison. All will die unless The Antidote is added, and he holds the city to Ransom. All seems lost until the Hero rides to the Rescue with The Antidote. The Hero puts the Evil Scientist behind bars, and [...]