What is a Minsky Moment? Max And Stacey Explain

Here is a new word for your financial term dictionary: The Minsky moment!

What is a Minsky moment? This is the official definition:

When a market fails or falls into crisis after an extended period of market speculation or unsustainable growth. A Minsky moment is based on the idea that periods of speculation, if they last long enough, will eventually lead to crises; the longer speculation occurs the worse the crisis will be. This crisis is named after Hyman Minsky, an economist and professor famous for arguing the inherent instability of markets, especially bull markets. He felt that long bull markets only ended in large collapses.

Here are Max and Stacey talking about the pending global Minsky moment: