Is This the Minsky Moment?
So I Yahooed it and came up with this nice blog about the phenomenon.
This is the crunch moment, the time when push comes to shove, when puts and calls have to put up or shut up, the crucial pay-up-time bottom line when all those speculators using other people's money and/or credit have to prove their worth or get out of the business.
I agree with Harry (gee, I was just in Monaco--I should have looked him up), although he goes a bit overboard in his description of the future (as usual--Harry doesn't like to talk in mundane terms).
[Thanks to BFI-consulting.com for the image.]
Harry says this is 1929-1933 all over again and that we should head for the hills. At AlamedaLearning.com, however, we get a more measured and cautious statement of the situation. There are some nice graphs that explain why and perhaps even how much of today's ominous rumblings may be a sign of earthquakes to come. I would tend to agree that the future is unknown, but I've reserved a front-row seat to watch the denouement. Hopefully, I won't get thrown onto my tail end as it unfolds.
(Newcomers: Please check out some of my past posts to see what I'm talking about. I've been predicting a wild ride for many months now, so I'm anxious to see how this all plays out.)