__________________________________
> MARKET ALERT
> from The Wall Street Journal.
>
> Aug. 10, 2007
>
> U.S. stocks rebounded, stopping a global market swoon, after the Fed
> stepped in to provide liquidity. The Dow ended trading about 30
> points lower, after earlier being down by more than 200.
>
> http://online.wsj.com/article/SB118674492611394201.html?mod=djemalert
Did somebody mention Hyman Minsky? I don't think so but I'll talk about him anyway. Here in Australia at least there's quite a bit of secondhand Minsky in the press coverage.
Although Minsky's normally thought of as a prophet of debt deflation, Ponzi schemes and all that, it strikes me that this is exactly what he would have predicted. In every example of financial instability since the 1950s he discusses in 'Stabilizing an Unstable Economy' (and his articles) doom was staved off by the central bank, either at the expense of tight counter-inflationary monetary policy, or allowing the next upswing of asset-price inflation to start from a higher baseline. This seems to be the more important story of financialised capitalism, not imminent collapse.
Mike scandalum.wordpress.com
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