The Wire

The US economy appears to be in meltdown following the collapse of the massive investment bank Lehman Brothers and the threatened bankruptcy of AIG insurers. At the last minute the US government agreed to prop up AIG’s debts to the tune of $US85 billion. They had no choice according to Associate Professor of Economics and Finance from The University of Western Sydney, Steve Keen. Catherine Zengerer asked him what would have happened if the US government hadn’t stepped in.