Two economists who are inspirations to me are Steve Keen, who publishes Debtwatch, and Mike Shedlock, who publishes Global Economic Analysis. I found them while trying to make sense of the credit bubble, and finding little or nothing forthcoming from the mainstream economic community. But Keen and Shedlock provided insights when most experts were silent, and they still do. I remember the summer of 2005, driving up Highway 99 in California’s Central Valley, and seeing a billboard advertising “ranchettes” that were “starting in the low $600,000′s” – in the middle of nowhere – in a state with a median household income of $60,000! People were buying homes that cost ten times their annual earnings.
A scathing recent post from Keen, “How I Learnt to Stop Worrying and Love the Bank,” and Shedlock’s “World Economic Forum Embraces Fraud,” followed by Keen’s response to Shedlock on the same topic, “Mish Mashes the WEF,” all reinforce this sad suspicion: Mainstream economists who think we can avoid deleveraging are still strangely clueless, or worse, they are in collusion and have a hidden agenda.