Tuesday , 20 November 2018


Tag Archives: Minsky Moment

Canada Could Be Developing a Minsky Moment In Real Estate – Here's Why

According to the Case-Shiller 10-City index Canadian house prices only appreciated by 84% between 1990 and 2006 compared to 181% in the U.S.. However, as U.S. prices plunged by almost 33% between the peak in April 2006 and the trough in May 2009, the chart below shows that Canadian home prices continued to rise, driven by very low interest rates and relatively benign unemployment. By July 2012, they had reached similar heights as U.S. prices before their decline and fall. I believe that house prices and consumer debt levels are overextended in Canada and that a "Minsky-moment" may be developing in Canadian credit markets. [Let me explain why I have come to that conclusion.] Words: 1892

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No Further QE Until This Fall – Here's Why

The Federal Reserve is in quite a pickle. Mr. Market expects them to print money to support the economy...but if the economy continues down this path, we may have a deflationary depression on our hands...Fed Chairman Ben Bernanke has said he will not allow this to happen under any circumstances. The Fed wants to keep interest rates low and create inflation so that it can pay off existing debt with cheaper dollars, avoiding insolvency. [The fact of the matter, however, is that] the Federal Reserve cannot stop printing money or the U.S. will experience the economic phenonmenon referred to as the Minsky Moment. [Let me explain just what the aforementioned all means.] Words: 1195

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No Further QE Until This Fall – Here’s Why

The Federal Reserve is in quite a pickle. Mr. Market expects them to print money to support the economy...but if the economy continues down this path, we may have a deflationary depression on our hands...Fed Chairman Ben Bernanke has said he will not allow this to happen under any circumstances. The Fed wants to keep interest rates low and create inflation so that it can pay off existing debt with cheaper dollars, avoiding insolvency. [The fact of the matter, however, is that] the Federal Reserve cannot stop printing money or the U.S. will experience the economic phenonmenon referred to as the Minsky Moment. [Let me explain just what the aforementioned all means.] Words: 1195

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