PIMCO quotes Minsky

Doug Henwood dhenwood at panix.com
Mon Jul 8 14:09:09 PDT 2002


Jeffrey Fisher wrote:


>i just finally read (most of) this article . . .
>
>am i the only one reminded of the LTCM bailout? i'm thinking of his
>suggestion of ordering banks to lend . . .

This is more systemic than LTCM. LTCM was a potential break in the payments change; he's talking about the solvency of nonfinancial corporations, and how what's rational for one (balance-sheet rebuilding) could be ruinous collectively. This is out of the box stuff for bourgeois thought.

Doug



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