{"id":24404,"date":"2017-07-11T20:14:59","date_gmt":"2017-07-12T01:14:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24404"},"modified":"2017-07-11T20:14:59","modified_gmt":"2017-07-12T01:14:59","slug":"the-return-of-the-minsky-moment","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24404","title":{"rendered":"The Return Of The \u201cMinsky Moment\u201d"},"content":{"rendered":"

The Return Of The \u201cMinsky Moment\u201d<\/a><\/h3>\n
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\u201cThe emergence of money manager capitalism means that the financing of the capital development of the economy has taken a back seat to the quest for short-run total returns.\u201d \u2013 Circa\u00a0<\/em>1992.<\/em><\/p><\/blockquote>\n

Wall Street has forgotten the great financial crisis.<\/strong><\/p>\n

A sense of relief has settled firmly on the legendary asphalt artery between Trinity and the FDR Drive.<\/p>\n

Looks like they got away with another one.<\/p>\n

Nobody else will, so let me say it (at least mean it): Thank you, Mr. & Mrs. Taxpayer. <\/em><\/p>\n

Again. Sincerely. Thank you. Now, let\u2019s get on with blowing your wealth out of the water again, just as portfolios have made it back to even. Older, a bit pudgier, more forehead than before.<\/p>\n

Oh wait, that\u2019s me.<\/p>\n

As the Great Recession gets pulled into the mist, obfuscated by the misleading but comforting math of market return averages and a bull that has rarely stumbled, Wall Street is more defiant than ever to broadcast:<\/p>\n

\u201cSee? We told you so! The markets always rebound in time!\u201d<\/em><\/p>\n

Time.<\/strong> That precious commodity you\u2019d pay more than you\u2019re worth, for.<\/p>\n

The concept of time holds little relevance to Wall Street. After all, its life expectancy may be considered perpetual. Eight years, seventeen years, whatever time it takes to recover from a poor cycle is irrelevant and may be celebrated. A human life is different. We die. We can\u2019t be so flippant over lost time.<\/p>\n

You know all too well about how painful it is to recover from losses.<\/p>\n

Understandable why it makes sense that Main Street, or why Americans vividly recall the Great Recession. They\u2019re older and unless in the top 1%, not much richer. They\u2019re also skeptical of the so-called economic recovery as inflation-adjusted median incomes have remained stagnant for close to a decade. Read: The Illusion of Declining Debt-To-Income Ratios.<\/a><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Return Of The \u201cMinsky Moment\u201d \u201cThe emergence of money manager capitalism means that the financing of the capital development of the economy has taken a back seat to the quest for short-run total returns.\u201d \u2013 Circa\u00a01992. Wall Street has forgotten the great financial crisis. A sense of relief has settled firmly on the legendary […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10597,3018,15491,860],"class_list":["post-24404","post","type-post","status-publish","format-standard","hentry","category-economics","tag-hyman-minsky","tag-minsky-moment","tag-richard-rosso","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24404"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24404\/revisions"}],"predecessor-version":[{"id":24405,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24404\/revisions\/24405"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}