Top Economist: The Unthinkable Is About to Happen to the U.S. Economy
6/10/202614 min
📚 Learn 50+ years of Real Economics in only 7 weeks. Apply here:
https://www.stevekeen.com/worstthan2008
(Apply this week and get my 3-Book Rebel Economist Bundle as a Free Bonus. Plus if you're fully approved by my team, get Ravel© - my proprietary economic visualization software I use in my YouTube videos; to predict the economy, like I did years before the 2008 Financial Crash happened).
In this video, world-renowned economist Steve Keen, who famously predicted the 2008 financial crisis, explains his financial instability hypothesis. He discusses how self-fulfilling expectations and "Ponzi" fina...
Clips
Transcript preview
First 90 secondsSpeaker 10:00
The American people can remain confident in the soundness and the resilience of our financial system. The economy is stable, solid, uh, strong So they had no idea the crisis was coming. Meet Steve Keen, world's leading economist, who predicted the 2008 global financial crisis. He explains how he saw the crash when no one saw it coming.
Steve Keen· Host0:20
Prediction of the FOMC was that growth would be between two and a half and two and three quarter percent. It was actually minus 2.5%. Now I saw that and thought, "Holy shit, we're in deep trouble." So this is the reason that I became well-known, I think, around the world, my model of Minsky's financial instability hypothesis. The reason that I saw the global financial crisis coming, I understood Minsky's financial instability hypothesis. Uh, and the difference between Minsky and the neoclassicals is basically the question they frame to try to understand the glo- the economy. They ask, "Can a market system reach equilibrium?" Interesting question. Okay. The trouble is, unfortunately, the answer's almost always no. And then like your worst dating nightmare, they won't take no for an answer, they continue knocking on your door and hitting your window and so on. So they stick with equilibrium no matter what. Minsky's question was, "Can it, a great depression, happen again? And if it can happen, why didn't it occur in the years since World War II?" He wrote this in 1982, and he said, "These questions naturally follow from the historical record and the comparative success of the past 35 years. Uh, and to do that, you must have an economic theory which can- makes great depressions one of the possible states in which it can occur."