by Summary:
This obsession with government surpluses is misguided. Why? Because it overlooks the ticking time bomb of private debt. When private debt balloons, it sets the stage for economic crises. Take the 2007 housing crisis. Governments were patting themselves on the back for their fiscal discipline. Meanwhile, private debt was skyrocketing. The result? A catastrophic financial meltdown. Reducing government debt while private debt soars is like fixing a leaky faucet while your house is on fire. It’s shortsighted and dangerous. Balancing both is essential for sustainable growth. We need to look at the whole picture. Ignoring private debt is a recipe for disaster. It’s not just about numbers on a balance sheet. It’s about real people, real lives. When private debt
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This obsession with government surpluses is misguided. Why? Because it overlooks the ticking time bomb of private debt. When private debt balloons, it sets the stage for economic crises. Take the 2007 housing crisis. Governments were patting themselves on the back for their fiscal discipline. Meanwhile, private debt was skyrocketing. The result? A catastrophic financial meltdown. Reducing government debt while private debt soars is like fixing a leaky faucet while your house is on fire. It’s shortsighted and dangerous. Balancing both is essential for sustainable growth. We need to look at the whole picture. Ignoring private debt is a recipe for disaster. It’s not just about numbers on a balance sheet. It’s about real people, real lives. When private debt
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Steve Keen considers the following as important:
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| This obsession with government surpluses is misguided. Why? Because it overlooks the ticking time bomb of private debt. When private debt balloons, it sets the stage for economic crises. Take the 2007 housing crisis. Governments were patting themselves on the back for their fiscal discipline. Meanwhile, private debt was skyrocketing. The result? A catastrophic financial meltdown. Reducing government debt while private debt soars is like fixing a leaky faucet while your house is on fire. It’s shortsighted and dangerous. Balancing both is essential for sustainable growth. We need to look at the whole picture. Ignoring private debt is a recipe for disaster. It’s not just about numbers on a balance sheet. It’s about real people, real lives. When private debt spirals out of control, people lose homes, jobs, and stability. The economy suffers. We need a more holistic approach. One that considers both public and private debt. Only then can we achieve true economic stability. Mainstream economists like Paul Krugman and Ben Bernanke often miss this point. They focus too much on government debt. But the real threat lies in unchecked private borrowing. We must shift our focus. Prioritize sustainable debt levels across the board. This isn’t just theory. It’s practical, everyday reality. When private debt is managed responsibly, economies thrive. People have more disposable income. Businesses can invest and grow. It’s a win-win. So let’s stop celebrating government surpluses blindly. Let’s start paying attention to the real dangers. Because ignoring private debt is a luxury we can’t afford. |
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I love the "black swans".
In finance, it is the risk of meeting a black swan, when you start a farm, which breeds black swans.
For calculating your risk, you take the probability you do experience in nature.
Much as I like many of Steve's themes, once again the presentation is tone deaf — here we have a short that doesn't actually play. I think that may be intentional — it's just a static image. Viewers will just get frustrated with this.
It’s a marketing guy doing this, who is absurdly shameless presenting as Steve or as a fake personal secretary who seems to work weekends and 24/7. It’s repellent.
You forgot the cherry on top, Bot Steve, you get your certificate of Rebelliousness and Free Thinking from the Pope of Rebel. Engineers and professionals are just gagging for it.