Steve Keen on the Return of Bear Markets

An insightful post from Steve Keen analysing the recent stock market collapses from the perspective of Hyman Minsky’s financial instability hypothesis:

Steve Keen, “The Return of The Bear,” Debtwatch, August 9th, 2011.

Steve Keen Debates Chris Caton on the Financial Market Crisis

A very nice debate here:

“ABC PM Debate with Chris Caton,” ABC Radio, August 7th, 2011.

Steve Keen makes a quite good point about private debt to GDP ratios. His opponent complains that debt to GDP ratios make no sense, because you are comparing a stock to a flow, yet public debt to GDP ratios are used all the time by opponents of government, to gauge the burden of debt. Either it is valid to use this measure or all such ratios (whether private or public) are invalid.