PIMCO quotes Minsky

[Bradford DeLong]

>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

But this is low Keynesianism: the paradox of thrift; the fallacy of 
composition; et cetera, et cetera, et cetera...

Brad DeLong