The Central Banks' Naive Theories on Private Debt

Banks ended up not lending money for productive investment, but lent it for speculation and Ponzi schemes. The body which is supposed to be in charge of the financial sector has enabled Ponzi scheme on growth of a financial sector that's far too big to occur. But if a central bank said, well, okay, we are very concerned about rising asset prices and particularly housing,. That would be a positive step forward. I still think the main thing is just reduce the level of private debt. Ring it down.