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This isn't just the story of GPUs or Oil, this is the entire story of capitalism going back to the early Industrial Revolution in the 1700s. The economist Hyma
by DebtDeflation 2y ago
This isn't just the story of GPUs or Oil, this is the entire story of capitalism going back to the early Industrial Revolution in the 1700s. The economist Hyman Minsky added asset prices and debt financing to it to round out a compelling theory of the business cycle including the extreme bubbles and depressions sometimes seen.
- automatic6131 2y agoAren't these both simply cases of the bullwhip effect? https://en.wikipedia.org/wiki/Bullwhip_effect https://en.wikipedia.org/wiki/Bullwhip_effect
- DebtDeflation 2y agoThat's a supply chain specific example. If you're looking for something more fundamental, they're all examples of unstable systems with positive feedback loops.
- bgnn 2y agoor bistable systems
- swyx 2y agohave you ever read a good expanation of why Minsky Moments happen? it always occured to me if you can time them right you can make a ton of money on the way up and on the way down
- immibis 2y agoIf they could be accurately predicted, they wouldn't happen.