Neat explanation of the current Global Financial Crisis

From Steve Keen's Debtwatch, a quote...

According to Minsky’s theory:

• Capitalist economies can and do periodically experience financial crises (something that believers in the dominant “Neoclassical” approach to economics vehemently denied until reality—in the form of the Global Financial Crisis—slapped them in the face last year);
• These financial crises are caused by debt-financed speculation on asset prices, which leads to bubbles in asset prices;
• These bubbles must eventually burst, because they add nothing to the economy’s productive capacity while simultaneously increasing the debt-servicing burden the economy faces;
• When they burst, asset prices collapse but the debt remains;
• The attempts by both borrowers and lenders to reduce leverage reduces aggregate demand, causing a recession;
• If the economy survives such a crisis, it can go through the same process again, with another boom driving debt up even higher, followed by yet another crash; but
• Ultimately this process has to lead to a level of debt that is so great that another revival becomes impossible since no-one is willing to take on any more debt. Then a Depression ensues.