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The Minsky Moment and Theory of Reflexivity: Minsky and Soros About Instability
- nabla9 2y agoMinsky Moment was building up before 2020. Instabilities were growing in shadow banking fueled by the low interest rates before 2020, but COVID-19 rolled it back. A tiny recession and supply shock, followed by inflation provides a hard reset. We are now at the safest stage, hedged finance. - Credit environment is not loose. - Investors are not taking too much debt. - Fed is fighting inflation, not fueling growth. Stock markets are booming but only in limited sectors. Most of the growth–with few exceptions–is backed by returns.
- Bluestein 2y ago> Investors are not taking too much debt. Your analysis is cogent. I'd only add, relating to the above, that it feels that we are "back" at it qua risk.-