America’s Minsky Moment Approaches

Commentary
A Minsky instant, which is named after the American economist Hyman Minsky, is conceived as a rapid and widespread collapse in asset prices, typically following a long period of speculative investment, extreme borrowing, and popular financial risk taking. In other words, it’s the time when the audio stops playing, buyers stop buying, and the Ponzi match ends immediately. It’s a tough collision.
America might be in the midst of a Minsky second.
This approach, which moves from gently, gently, to suddenly and then, goes back decades.
Politicians, central bank, and state officials deferred the confrontation with truth that was necessary to restore America’s economic balance following the global financial crisis of 2008-2009, apparently when they would no longer be present.

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