Minsky For Dummies

We are covering a lot of ground here today, from Trader Monthly to The New Yorker.

The pseudo intellectual blog mob enjoys poking fun at Trader but it is more entertaining than most blogs, and more profitable to boot. Randall Lane and Co. have rolled out several new titles, and the advertising dollars seem to be tumbling in.

But we are going to switch gears and head uptown. John Cassidy’s New Yorker piece, “The Minsky Moment” can bring you up to speed on the topic in case you are dining with the swells at Orsay and need to join the conversation.

Many of Minsky’s colleagues regarded his “financial-instability hypothesis,” which he first developed in the nineteen-sixties, as radical, if not crackpot. Today, with the subprime crisis seemingly on the verge of metamorphosing into a recession, references to it have become commonplace on financial Web sites and in the reports of Wall Street analysts. Minsky’s hypothesis is well worth revisiting. In trying to revive the economy, President Bush and the House have already agreed on the outlines of a “stimulus package,” but the first stage in curing any malady is making a correct diagnosis.

Check out the article, it beats bottom fishing in the stock of Cisco. Tomorrow is already looking ugly.

The Minsky Moment
The New Yorker

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