http://en.wikipedia.org/wiki/Debt_deflation http://en.wikipedia.org/wiki/Debt_deflation It's controversial though. Austrians have a similar theory - that mali

http://en.wikipedia.org/wiki/Debt_deflation http://en.wikipedia.org/wiki/Debt_deflation It's controversial though. Austrians have a similar theory - that malinvestment in the boom (rather than a lack of investment in the bust) is the problem. And then there's the mainstream neo-classicals, who say it must have been the government because the private sector can't make mistakes.