PIMCO quotes Minsky

Doug Henwood dhenwood at panix.com
Mon Jul 8 15:57:59 PDT 2002


Bradford DeLong wrote:


>>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...

Do you read Wall Street economics?

Doug



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