Ponzi finance units must increase outstanding debt
in order to meet financial obligations
A transition occurs over the course of an expansion
as increasingly risky positions are validated by the booming economy
that renders the built in margins of error superfluous
encouraging adoption of riskier positions
Eventually, either financing costs rise
or income comes in below expectations
leading to defaults on payment commitments
Hyman Minsky
Believed excessive debt causes financial crises
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