Reflation - αυτό περιμένουν όλοι!!

Hyman Minsky

Minsky's Theories and the Subprime Mortgage Crisis

Hyman Minsky's theories about debt accumulation received revived attention in the media during the Subprime mortgage crisis of the late 2000s.

Minsky argued that a key mechanism that pushes an economy towards a crisis is the accumulation of debt. He identified 3 types of borrowers that contribute to the accumulation of insolvent debt: Hedge Borrowers; Speculative Borrowers; and Ponzi Borrowers.

The "hedge borrower" is one who borrows with the intent of making debt payments from cash flows from other investments; The "speculative borrower" who borrows based on the belief that they can service interest on the loan but who must continually roll over the principal into new investments; and the "Ponzi borrower" (named for Charles Ponzi) who relies on the appreciation of the value of their assets (e.g. real estate) to refinance or pay-off their debt but who does not have sufficient resources to repay the original loan, otherwise.

Minsky was also identified as one of very few authors who (with Donald Markwell) discussed Keynes's belief that his economics was likely to be more conducive to peace than the old economic system had been.

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I didn’t put a date on that box, Bun, precisely to avoid answering the question as to precise timing. All I can say is that the timing is ripening, with the Fed now committed to an all-in reflationary campaign.
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even the best laid reflationary plans might go awry, at least in the short run.