Thursday, May 28, 2009

Stability is destabilizing

http://seekingalpha.com/article/76313-introducing-the-minsky-theory-stability-is-destabilizing

The author explains Minsky theory in a clear but concise manner. A nice read. Minsky's theory is that stability in financial matters has a perverse incentive of creating a destabilizing situation which ultimately leads to high risk and high leverage resulting in recession. A nice read.

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