Koo's Coup

The blogosphere is unquestionably a bit of an echo chamber, but a new meme does appear to be bouncing around -- the balance sheet recession.  Basically, the idea Koo outlines in that quite accessible presentation is that modern economies have a long duration cycle defined by firms swinging from profit maximization to debt minimization.  Now I see other people picking up this ball and running with it.

Martin Wolf was the first place I saw it.
Keiichirio Kobayashi is one of several Japanese officials to break radio silence, all asserting that the US is not doing enough about it's banks.
Roger Altman has an FT editorial today.
And Paul Krugman has even gotten in on the act.