I have just been interviewed by Peter Switzer on the Switzer show on Sky News Australia. Peter interviewed me for over 15 minutes, which allowed plenty of time to discuss such things as:
- The “Revere Award” and the economists who predicted the crisis–including Michael Hudson, Wynne Godley, Ann Pettifor as well as myself, Roubini and Baker;
- Why we saw a crisis coming (runaway private debt bubble that had to burst);
- Why some of my post-crisis calls were wrong–at least in the immediate term in Australia (huge government stimulus and the First Home Vendors Boost [see also this link]);
- What the prospects were for Australian real estate (down about 40% over 10–15 years, maybe 15–20% over next 2–3 years);
- What the next two years might hold for asset markets and unemployment (stagnant asset prices and rising unemployment); and
- Whether it might be possible to have a “Goldilocks Downturn” where asset prices rise but slowly, unemployment rises but not too much, and it’s all over in a few years rather than a decade (my answer was that “you can’t have all three”).
Click here to watch the interview on Sky News at a full frame rate, or click below to watch a recording at a lower frame rate. And hats off to Peter for an excellent interview.