Yellen said she needed a quote from Minsky in her paper. She didn't quite eat it to an extent as well. They obfuscated it by placing something else on top of it, basically. But the funny thing is she then had a, like people say, well, she quoted Minsky. Well, unlike most people, I read the papers. And that's a sort of lip service they make to alternative thought. So if it's not the bank's fault this time around,. It's the fault the financial sector is too big. We should have been more vigilant about what we were doing with government debt.
We last had a financial crisis in 2008 (ignoring the pandemic years), and if we’re not in another crisis now, we’re well on the way to it, with mortgages rising, taxes increasing and the price of everything continuing to rise. Your spending power is being hit in three directions. But, isn’t that what central banks want? So we spend less and inflation comes down, theoretically. Yet the banks, who might not be to blame this time, are now feeling the hurt. In fact, they stand to gain from rising interest rates because they can raise their borrowing costs. This week Phil asks Steve, will the banks always win, come what may?
Hosted on Acast. See acast.com/privacy for more information.