Monday, April 1, 2013

Keen: Greenspan's bullish, time to sell

Prof. Steve Keen, author of Debunking Economics and the Minsky dynamic computer model notes that former Fed Chairman Alan Greenspan is bullish on stocks and he's been so disastrously wrong in the past that it likely marks the top of the market.

Prof Keen promotes the idea that change in demand in the economy is the change in GDP plus the change in debt.  Private debt is often ignored by conventional economists, but by looking at when private debt starts decelerating you may be able to anticipate market crashes.  Right now we are are bit below a cyclical top stock margin debt, so look out below!

The problem in cyprus