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Sorry, the above post was supposed to be a reply to my own "Overheating" comment above.

I tried to google "overheating Minsky" together, but unambiguous relations are rare. It's a bit surprising that people interested in the same problem do not find each other's ideas easily.

One article cites an anonymous Waal Street economist:

what's going wrong is that economy is doing better than anyone expected it to do.

I think that many pyramid players had the same moment about their game. Sure, I immediately can raise a few obvious disclaimers, but...

Other NY analyst can say this:

When asset prices rise, it reflects a change in the money supply/asset relationship, meaning more money chasing the same number of assets. Thus when asset prices rise, it is not necessarily a healthy sign for the economy. It reflects a troublesome condition in which additional money is not creating correspondingly more assets. It is a fundamental self-deception for economists to view asset-price appreciation as economic growth. A housing bubble is an example of this.
by das monde on Fri Mar 23rd, 2007 at 02:35:42 AM EST
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