25 Aug 2009
David Stevenson
Bubbles are a wondrous affair, and, according to the aficionados, easy to spot from afar.
The ever insightful US economist Nouriel Roubini reminds us of the sadly predictable cycle of euphoria and despair (first described by Hyman Minsky) with a simple set of stages that starts with investors meeting their investments out of cashflow, which then moves on to speculative borrowers, and finally crashes with Ponzi borrowers who can’t service either the interest or the principal.
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In These New Times 