4 ms·

I think all of your points are valid. It IS a complex subject, and we should be open to many view points. There are certainly a number of lines of attack on my

I think all of your points are valid. It IS a complex subject, and we should be open to many view points. There are certainly a number of lines of attack on my ideas that are valid and reasonable. I bristled at the idea that my statement is ahistorical. It may have other problems, but I've yet to see any historical counter examples - a period of mass-deleveraging leading to economic retractions in the absence of artificially low interest rates. If you can cite an example like that, I'll rethink my statement.

ska 9y ago
Ok, I don't have time to do this properly but as a first pass: 1) I think you are now narrowing quite a bit ".. mass-devleveraging ... interest rates" 2) Consider e.g. sovereign defaults of England and Spain in 14th, Roman bank collapses & liquidity issues - multiple times during both Roman and Byantize (will posit that many early issues are difficult to separate from wars, but there were fairly clear panic effects in iirc 3rd and 4th). Italian banks in 14th c. etc.