The Minsky Moment and Theory of Reflexivity: What Minsky and Soros Taught Us About Instability — Speculators Anonymous

From speculatorsanonymous.com

I’ve long believed that markets and economies trend towards disequilibrium (aka a loss of stability). And this is contrary to what we learned in economics – that a system tends towards equilibrium. And while equilibrium may sound good in theory; it doesn’t hold up in reality. Why? Because markets and the economy are complex and dynamic social systems. Meaning they constantly change over time and have ripple effects. There are eight billion people in the world – both rational and irrational– driven by their own biases. Thus influencing everything around them. Now, while many may cling to the idea of ... (full story)