If Steve Keen is such a moron, it should be a walk in the park for you to shoot down his arguments?
And just in case you were too busy managing your property portfolio to listen to the clip, I will summarise it for you:
1. There is a business cycle underpinning the economy - it moves up and down over time.
2. On the upswing, it is human nature for people to think the good times will roll on forever, and rising asset prices will continue. During the upswings in the business cycle, people progressively get into more and more debt until a point is reached at which the debt is unsustainable and then the cycle reverses to a downswing.
3. Australia has reached the unsustainable level of housing debt so it is about to get (even more) ugly.
