Home > Austrian School, Central banking, Fiscal Armageddon, Mainstream failure, Money As Debt > Private debt “has now reached levels that are simply unprecedented in human history.”

Private debt “has now reached levels that are simply unprecedented in human history.”

Steve Keen calls a second GFC due to private debt levels that┬áhave “now reached levels that are simply unprecedented in human history.”

I agree.

But when?

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  1. Alice
    December 7, 2009 at 10:29 am

    soon KAMA soon. MY bet is on 2010 or 2011. I think there are a whole pile of mortgages that will explode next year in Oz. House prices despite RE nonsense are sinking slowly.

  2. December 7, 2009 at 10:56 pm

    Agreed.

    I stated there is likely to be a housing bust/liquidity crisis in Oz around 2010-2011 in my “Predictions for 2010” post.

    Westpac (as the most marginal of the Big Four) is the first to move above the cash rate. This is a sign of things to come. A permanent spike in funding costs will squeeze all the Oz banks. They’ve painted themselves into a corner by embezzling/leveraging too much. There are no savers/depositors in Oz. The banks killed them after deregulation.

    Note: Australia is one of the countries with NO CLEAR RESERVE REQUIREMENTS for its banking industry. NONE.

    Now the banks will die because they killed their own deposit base.

    Sad.

  1. December 18, 2009 at 5:23 am

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