Recent Items  Does Income Inequality Help Cause Financial
Crises?  Posted on by  New York Times writer Louise Story recaps
a bold thesis put forward by David Moss of Harvard Business
School, namely, that high levels of income inequality stoke
financial crises:  The possible connection between economic
inequality and financial crises came to Mr. Moss about a year
ago… A colleague suggested that he overlay two different graphs
— one plotting financial regulation and bank failures, and the
other charting trends in income inequality.  Mr. Moss says he
was surprised by what he saw….      Yves here. This is
intriguing, but I am inclined to believe that income inequality
is either a symptom of conditions that can produce bank crises
(like excessive financailization of an economy) or a secondary
contributor. If you simply look to Minsky’s theory of financial
instability, a rise in what he calls speculative units and Ponzi
units would benefit leveraged speculators, and shift incomes and
wealth away from ordinary worke