This Roving Cavaliers of Credit blog post from Naked Capitalism is an excellent read if you want to grab an alternative view of the current economic situation. It’s very long and detailed so be warned, but definitely worth the time if you have the inclination.
In fact, thanks to Milton Friedman and neoclassical economics in general, the Fed ignored the run up of debt that has caused this crisis, and every rescue engineered by the Fed simply increased the height of the precipice from which the eventual fall into Depression would occur. Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees.
