…are associated with the growth of domestic credit, which can lead to asset bubbles and financial crises. Second, the differences in the returns on equity and debt affect the investment…

…ratios. These measures are designed both to prevent the occurrence of credit bubbles and to make financial institutions more resilient. A European Banking Authority has been established to set uniform…

…on Minsky’s argument (backed by Kindleberger in his Manias, Panics, and Crashes) that the vast majority of major speculative bubbles experience periods of gradual decline after their peaks prior to…

…GDP has staggered through three successive bubbles, never falling below the 4:1 ratio that had been the maximum during the previous 50 years. At the end of 2017, the ratio…

…contrast to those of their European counterparts. Ireland and Spain had to deal with their own banking crises following the collapse of their housing bubbles, and Portugal suffered from anemic…

…market economies that became integrated with world markets during this period. But the large-scale extension of credit to the housing sector led to property bubbles in the U.S., as well…

…Turkey in 2001. While some of the crises were the result of unsustainable government policies, there were also outflows of private capital that had fueled credit bubbles. The massive disruption…

…have studied feedback loops in re electronics, physics, biology, … Housing bubbles are an example of a positive feedback loop in economics; an all too familiar example of catastrophic ‘Market’…

…Crises Theories: Labor Scarcity and Fictitious Capital, of especial interest now with all the wild speculative bubbles we are seeing with “fictitious capital” Marx’s term for asset values above their…

…prices and distorted expenditures. Once the bubbles in housing prices burst, financial institutions sought to unload mortgage-backed securities, forcing their prices down further. The rapid nature of the collapse in…