> The single most destructive force in a crash is deflationary pressure which can quickly feed on its self and spiral out of control.
Well, that's part of the Keynesian view yes. I'm personally of the belief that currency-fuckery causes crashes in the first place, and that more currency-fuckery isn't the answer [1].
But let's just say Keynes is right for now. That still doesn't explain why the healthy Clinton/Bush economies had crazy-low interest rates, which was the main cause of this mess.
[1] While it has a humorous spin, the Keynes vs. Hayek rap is incredibly well informed about both positions, and it's pretty easy to follow and entertaining -
Monetarism has very little to do with Keynes, its' main figurehead is Milton Friedman (not too far to the left of political spectrum from your beloved Hayek).
Well, that's part of the Keynesian view yes. I'm personally of the belief that currency-fuckery causes crashes in the first place, and that more currency-fuckery isn't the answer [1].
But let's just say Keynes is right for now. That still doesn't explain why the healthy Clinton/Bush economies had crazy-low interest rates, which was the main cause of this mess.
[1] While it has a humorous spin, the Keynes vs. Hayek rap is incredibly well informed about both positions, and it's pretty easy to follow and entertaining -
http://www.youtube.com/watch?v=d0nERTFo-Sk