Tag Archives | Minsky

Another ‘Minsky Moment’ beckons for US stock markets

The West has been living with cheap money from the central banks for over 5 years.  Credit has been very easy to obtain in the financial sector, and interest rates have been at all-time lows.  The result can be seen in the chart above from Business Insider of total lending to fund stock purchases on the New […]

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China’s empty cities create global lending risk

More details continue to surface of the wasteful spending that underpinned much of China’s GDP growth in recent years.  The empty city of Ordos (first highlighted 3 years ago in the blog) is just one example.  House prices there have recently fallen 50%, and the shadow banking system (critical for privately-owned companies) is reportedly in […]

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Markets slow as debt worries increase

The blog is becoming worried about the likely outlook for Q2. Sentiment now seems to be weakening alongside the fundamentals of supply/demand: • Fundamentals. The start of 2013 has been a disappointment. Demand has shown some recovery after the low levels seen at the end of Q4. But there have been few signs of any […]

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The Bank of Dad and Mum rules

Paul McCulley of Pimco, the world’s largest bond fund managers, has been continually insightful about the lead-up to the current Crisis and its fall-out. He first alerted the blog to the work of Hyman Minsky, which is the best (and so far only) explanation for the disaster that is continuing to hit the world financial […]

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“Basically, orders just stopped”

The moment the blog has long feared has now begun to happen. Celanese chairman David Weidman said on Tuesday that acetic acid prices in Asia had dropped sharply in recent weeks. “Basically, orders just stopped”, he added. It is almost certain that this moment will now be repeated in other product areas and in other […]

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