Seeds Of Yesterday
Lots of mortgages were made on the assumption that housing prices would continue to go up. A rosy outlook led people to take on more and riskier forms of debt, sowing the seeds of a financial crisis. This is the Financial Instability Hypothesis in action. McCulley writes that:
Seeds of Yesterday
What can a turkey learn about what is in store for it tomorrow from the events of yesterday? A lot, perhaps, but certainly a little less than it thinks, and it is that \u201Clittle less\u201D that makes all the difference.
During his lifetime, Minsky\u2019s theories collected dust. He passed away in 1996 a relatively obscure economist. This changed in the fall of 2007 amid the subprime mortgage meltdown and subsequent financial crisis. Today, Minsky is best known for his Financial Instability Hypothesis, which asserts that periods of prosperity sow the seeds of the next crisis. Stability begets instability.
Cyberattacks can paralyse individuals, businesses and governments. Increasingly sophisticated forms of information manipulation and interference have become more frequent and more destructive. They test our faith in facts and sow the seeds of doubt. 041b061a72