March 2007 Article: The Plankton Theory Meets Minsky – By Paul McCulley

Watching the on-going meltdown in the sub-prime mortgage market, which is triggering a sharp tightening of underwriting standards to these dicey credits, I was reminded of prescient writings by two serious thinkers: Bill Gross and Hyman Minsky. Both narratives go back a long ways, with something that Bill wrote in August 1980 – 27 years ago! – particularly poignant:

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Related book: Stabilizing an Unstable Economy

Related papers:

“Minsky Crisis” – by L. Randall Wray

“Securitization” – by Hyman P. Minsky

“What Do Banks Do? What Should Banks Do?” – by L. Randall Wray

Related link: Simoleon Sense: Hyman Minsky Megapost!