Two good commentaries on The Panic
I don’t have time to write a full blog on this myself, but here are some of the best commentaries to explain what’s going on that I’ve seen recently.
On AIG:
http://www.nytimes.com/2008/09/16/opinion/16lewitt.html
On Lehman, counterparty risk, and the dangers of a derivatives meltdown (which an AIG collapse might well precipitate:
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=2234
About Steve Keen
I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.
