Reply #45: HYMAN MINSKY’S SEVEN BUBBLE STAGES [View All]

[DemReadingDU]

12/28/10 HYMAN MINSKY’S SEVEN BUBBLE STAGES

The late Hyman Minsky, Ph.D., was a famous economist who taught for Washington University’s Economics department for more than 25 years prior to his death in 1996. He studied recurring instability of markets and developed the idea that there are seven stages in any economic bubble:

Stage One – Disturbance:
Stage Two – Expansion/Prices Start to Increase:
Stage Three – Euphoria/Easy Credit:
Stage Four – Over-trading/Prices Reach a Peak:
Stage Five – Market Reversal/Insider Profit Taking:
Stage Six – Financial Crisis/Panic:
Stage seven – Revulsion/Lender of Last Resort:

much more about each of these bubble stages...
http://economicedge.blogspot.com/2010/12/morning-update-market-thread-1228.html