Steve Keen on the Minsky Singularity and the Debt Black Hole's Event Horizon!

Welcome to Capital Account. Greece drops demands for softer bailout terms, fearing rejection from international lenders. Australian economist and Debunking Economics author Steve Keen will tell us if this is a case when debt deflation wins and the real economy loses. In the US, new jobs numbers disappoint again. However, the number of consumer and business bankruptcies are falling and could end the year at the lowest level since the 2008 financial crisis. Is this good news? Maybe not, as it may be due to rock bottom interest rates. Also, student loan delinquencies are rising. Economist and Professor Steve Keen will talk about the toll that too much debt can have on an economy once it has broken past the "event horizon."

Plus, UK authorities open a criminal probe into the attempted rigging of LIBOR. Meanwhile, a US bank regulator warns banks are taking increasing risk as a result of ZIRP (zero interest rate policies). Have we reached the event horizon of a Minsky singularity, which is sucking us into a black hole of all consuming debt? Is this the point of no return? There have been many efforts to paper over the debt, but it hasn't gone away. Economist Steve Keen, author of "Debunking Economics: The Naked Emperor Dethroned," will explain. He agrees that ZIRP is resulting in increased risk taking by banks. Yet the bad practices of banks, including the manipulation of markets and profiting from ponzi schemes, are ignored in the economic models of academics who influence policy. Professor and economist Steve Keen will tell us how this is possible.

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