Thursday, February 12, 2009

Thinking About Debt Deflation

From The Aleph Blog:

Amid my recent difficulties (sickness, loss of my main computer, difficulties updating my blog software), I have been musing about the health of our economy going forward. Before I give my opinion, I want to share a range of views that I think are worth reading:

I admire the efforts that many are making in moving back to first principles. We see analyses from Classical, Austrian, Post-Keynesian, Minsky (nonlinear dynamics), and other perspectives.

My view remains that depressions result from a buildup of too much debt, including debt complexity....MORE