Sunday, September 20, 2009

The Minsky Moment

One of the interesting aspects of the contraction cycle is that things that have been "out of vogue" suddenly become interesting and popular again. One shift that is occurring is that "buy and hold" might be loosing popularity to "market timing". The article below presents an interesting story of the rise and fall of economic theories.

"After spending his life warning of the perils of the complacency that comes with stability - and having it fall on deaf ears - Minsky was understandably pessimistic about the ability to short-circuit the tragic cycle of boom and bust. But he did believe that much could be done to ameliorate the damage."

The entire article:

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