Finally, a “Minsky Moment”—as the Paul McCulley of PIMCO dubbed it—occurs. Market insiders take profits, everyone panics, and a crash ensues before the cycle starts over.

Minsky’s writing about debt and the dangers in financial innovation had the great virtue of according with experience. But this virtue also points to what some might see as a shortcoming.

Figure 1 above, is one read on what seems to be going on with the Minsky cycle and the state of major global assets in 2017.

A Minsky moment is the onset of a market collapse brought on by speculative activity during an unsustainable bullish period.

Minsky argued that the financial system played a big role in exaggerating the economic cycle, one that was understated by conventional theory.

Minsky argued that financial cycles naturally progress from each stage of financing to the latter, driven by human greed and carelessness.

Stability breeds Instability. Instability can fell the mightiest of the beasts in the economic jungle. Minsky's prescription to counter the wild swings.

By placing the EPL within the Minsky cycle, we demonstrate how the actors that make up the league skirt the boundaries of hedge, speculative and Ponzi financiers, as the over-leveraging of clubs ...

The late American economist Hyman Minsky taught that there was a regularity to credit cycles that always ends in tears. Many years of financial stability and low interest rates induce investors to ...

Of course, fiscal stimulus played a central role in Minsky’s policy prescriptions for combating economic cycles. Minsky also emphasized the importance of lender-of-last-resort interventions by the ...