Private debt - the major problem

Explore the business, economy, finance and trade aspects of human society.

Moderators: Calilasseia, ADParker

Private debt - the major problem

#1  Postby Ihavenofingerprints » Apr 05, 2013 6:23 am

We spend a lot of time worrying about public debt and discussing what governments need to do about it. But I watched this interesting conversation with an economics professor who suggests that our own (private) debt is a much larger problem, and discusses some solutions towards the end.

[youtube]http://www.youtube.com/watch?v=rtSs9RIoLHQ[/youtube]
User avatar
Ihavenofingerprints
THREAD STARTER
 
Posts: 6903
Age: 28
Male

Australia (au)
Print view this post

Ads by Google


Re: Private debt - the major problem

#2  Postby GT2211 » Apr 05, 2013 11:46 pm

Oh lawd Steve Keen
gt2211: Making Ratskep Great Again!
User avatar
GT2211
 
Posts: 3089

United States (us)
Print view this post

Re: Private debt - the major problem

#3  Postby Loren Michael » Apr 06, 2013 3:20 am

I don't really do videos, even if I had access to them most of the time.

Feed me text, it's easier and faster for me to absorb.
Image
User avatar
Loren Michael
 
Name: Loren Michael
Posts: 7411

Country: China
China (cn)
Print view this post

Re: Private debt - the major problem

#4  Postby Ihavenofingerprints » Apr 06, 2013 6:53 am

I don't think theres a transcript. But basically he says that if people are worried about the public debt of OECD countries, then they should be much more worried about private debt which is about 3x that of public debt.

One of his solutions (if I understood and remember correctly*) was to give the banks much tighter restrictions on how much they can loan to avoid the housing bubbles that result from unregulated lending. (ie: maybe only let them loan what can be repaid by the monthly rent price). Then to actually solve some of the debt crisis, give cash handouts to citizens on the condition that they use it to pay off any outstanding debt they have before they spend it on anything else.

*I'll watch that bit again when I get time to give a better description.
User avatar
Ihavenofingerprints
THREAD STARTER
 
Posts: 6903
Age: 28
Male

Australia (au)
Print view this post


Return to Economics

Who is online

Users viewing this topic: No registered users and 1 guest