SO, WHAT IF OUR MINSKY IS MORE THAN A MOMENT? Towards a Reduction in the Perils of the Perpetual Ponzi Economy

“Unless we understand what it is that leads to economic and financial instability, we cannot prescribe — make policy — to modify or eliminate it. Identifying a phenomenon is not enough; we need a theory that makes instability a normal result in our economy and gives us handles to control it.” Hyman Minsky

“If the World was a bank, they would have bailed it out already.” Bruno Latour

“Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes a bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill done.” John Maynard Keynes

From Minsky Moments to Monumental Malfunction

The very day (back in 2008) the global financial systems nearly imploded, Wall Street traders readily admitted having a “Minsky Moment” (where the Ponzi poop hits the proverbial fan). Mainstream economists, meanwhile, admitted nothing and stood around scratching their heads (or other body parts). The recurring and inherent fragility of our financial institutions still seems to go largely unnoticed, and virtually nothing has been done about it. In fact, with permanent enshrinement of mega-moral hazard (the indemnifying of hyper-speculation) has suspended everyone in a vicious cycle of bailouts for fun and profit. We are…