John Maynard Keynes famously quipped, “The market can stay irrational longer than you can stay solvent.” With that in mind, how much longer can households stay insolvent whilst markets continue irrationally marching to all time highs? Does household debt loads even matter? Double Down talks to Professor Steve Keen for his take on headlines out of Canada about rising house prices, growing debts and whether or not governments should take action to pop housing bubbles before they grow out of control. And to the question posed in his book, “Can we avoid another financial crisis?” The short answer: no.
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