Another Summer of Discontent: The Four Factors that Explain Why What We’re Doing Isn’t Working

Here is what we know about the global economy given the experiences of the past four years: There is a global insufficiency of demand relative to an immense oversupply of labor and productive capacity. The imbalances between high-wage/current-account-deficit/balance-sheet-indebted nations and lower-wage, surplus nations have produced a glut of savings in the latter, relative to the opportunities […]


As the Global Financial Crisis rumbles along in its fifth year, we read the latest revelations of bankster fraud, the LIBOR scandal. This follows the muni bond fixing scam detailed a couple of weeks ago, as well as the J.P. Morgan trading fiasco and the Corzine-MF Global collapse and any number of other scandals in […]

American Pie in the Sky

From Project Syndicate: While the risk of a disorderly crisis in the eurozone is well recognized, a more sanguine view of the United States has prevailed. For the last three years, the consensus has been that the US economy was on the verge of a robust and self-sustaining recovery that would restore above-potential growth. That […]

The Unacceptable Behavior of the Market

Last night I arrived at my family’s home in Spain just in time to catch Spain play Italy.  The whole family and lots of friends watched it, while feeding on great seafood and lots of wine, at a neighboring chiringuito on the beach, and I guess if you weren’t there you can only imagine the excitement.  I suppose this spectacular win […]

Lies, Damn Lies and LIBOR

I’ve been hesitant to write about the LIBOR scandal because what I want to say goes so much further. We now know that Barclays and other major global banks have been manipulating the calculation of LIBOR through the quotation data they provided to the British Bankers Association. What I suspect is that this is not […]


Earlier this week I noted, tongue-firmly-in-cheek, that we’re all MMTers now, following Paul McCulley’s recommendation that we just declare victory. And be nice about it. Well here is a strange post from Brad DeLong: He proclaims that essentially anyone who is anyone is a Minskian. And apparently always was. That is why mainstream economists […]

China: Falling Dominoes

Last month, I called attention to an article in Caixin magazine about the implosion in Beijing of something called a “credit guarantee company,” and examined the potential risks such entities pose to China’s financial stability.  Today, Caixin published another must-read article about a new crisis in which credit guarantees — this time directly between borrowers […]

Germany Is a First Class Passenger on the Euro Titanic

I was on RT’s Capital Account on Monday afternoon, talking about the euro crisis yet again. The video is below but I have a few comments before you watch it. In the video, I say Europe can continue dithering for quite a while. There is no sense in making predictions about imminent euro zone destruction […]

Yanis Varoufakis: Greece is Finished

Yves here. Yanis just posted an interview with ABC (Australia’s BBC) which describes how Greece cannot be salvaged. Its fate will be determined at the eurozone level, and its possible outcomes range from bad to awful. You can watch the conversation here. Transcript below: LEIGH SALES, PRESENTER: Joining us now from Athens is the Greek […]

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