“If You Want to Head-Off Fascism, You’ve Got to Find a Politician Willing to Take on the Financial Sector”

Professor Steve Keen, prominent among a small group of economists who correctly foresaw the 2007 meltdown, talks about the parallels between the Great Depression of the 1930s and the current “great” recession. The key indicator he uses to predict periods of major economic collapse is the ratio of private debt in an economy to GDP. […]

Roubini Warns That Crisis in 2013 Would Be Worse Than 2008

Nouriel Roubini, the American economist who famously predicted the collapse of the housing market and the Great Recession in 2008, now warns that a crisis in 2013 would be worse than 2008 because “we have run out of policy bullets … we have run out of policy rabbits to pull out of the policy hat.” […]

Krugman Debates British Medieval Barbers, and Wins

On BBC Newsnight, Paul Krugman debates venture capitalist John Moulton and Conservative MP Andrea Leadsom. Krugman likens today’s austerity proponents to medieval barbers who — when they noticed that their previously-bled patients had gotten worse — prescribed more bleeding. Krugman points out that we have had several years of evidence now demonstrating conclusively that austerity […]

True Unemployment Rate at Depression Level (19.9%) and Rising

This article by Daniel Amerman (rated as a “must read” by Yves Smith in her Naked Capitalism blog today) examines in excruciating detail the government’s manipulation of unemployment statistics to make the rate look lower than it actually is, to make it appear to be falling when it is actually rising: When we look at […]

With Luck, This is Only a “Lesser Depression”

Editor’s Note: Paul Krugman, as usual, clearly describes the economic illiteracy that rules on both sides of the Atlantic. If we’re lucky, this will only be a “lesser depression.” The Lesser Depression by Paul Krugman July 21, 2011 “These are interesting times — and I mean that in the worst way. Right now we’re looking […]