Comments on: Treasury’s positive outlook is a false vision

By: Andrew Pengilley

Andrew Pengilley — Wed, 13 May 2009 23:26:55 +0000

Politicians have been trying the ‘think happy thoughts, go to your special place’ cure for the recession for a year or so now to no avail. Sentiment mainly seems to mean that people are so optimistic they will take on more debt, which is no cure when the problem is too much debt.

By: scottyea

scottyea — Wed, 13 May 2009 21:29:08 +0000

If the initial cause of this GFC is accepted to be the (continuing) over-issuance of credit by the US Federal Reserve, then, yeah, the Treasury’s positive outlook is definitely a false vision.

Sentiment or no sentiment, Pedro, only a stupid maniac or a criminal would try to spend his or her way out of bankruptcy…..

By: Glendle Schrader

Glendle Schrader — Wed, 13 May 2009 12:33:15 +0000

The article by Associate Professor Steve Keen, School of Economics & Finance, University of Western Sydney, is so much crap. Whate ever generation this person perports to be sponed from, he is full of shit.

By: pedro

pedro — Wed, 13 May 2009 11:06:11 +0000

Steve Keen, another ‘glass half-empty’ exponent.

As a person who, by writing this article obviously takes a pessimistic view of the current global crisis, I might suggest that you fail to take in to account the notion of ‘sentiment’ in economic confidence.

If everyone was like you, saying how bad it is and that it could/probably will get worse, what do you think is the likely outcome?

Seriously Steve, it doesn’t take an Associate Professor in Economics and Finance to work that one out.

By: MichaelT

MichaelT — Wed, 13 May 2009 05:21:43 +0000

I think we should take Steve very seriously. We have been experiencing what Nassim Taleb described as a ‘Black Swan’ eventuality. The idea is that if for the whole of your lifetime you have only seen or heard of white swans, you will assume that black swans do not exist, which is what everyone in the history of the world assumed until Australia was discovered.

This is the problem with comparing the current situation with the previous recessions we have lived through. They were all white swans and we are now dealing with a black one - so many of our normal expectations may prove to be ill-founded.

By: Doug Clark

Doug Clark — Wed, 13 May 2009 05:04:36 +0000

Steve’s views are always entertaining and disturbing. It’s good to get a more sober reflection, especially as people are getting excited about green sprouts appearing. Not that i’d wish it upon him, but perhaps the ultimate vindication of his doomsday views would be if the Uni sacked him?