Even before Lehman Brothers failed ten years ago this weekend, the financial crisis was bad. But it was the failure of Lehman Brothers that tipped a bad situation into an absolute disaster, and brought the global financial system to the brink of collapse. I argue that serious discussions about the financial crisis need to take place against the backdrop of Hyman Minsky’s ideas about financial instability. Bailout issue did not cause the financial crisis. A Chinese financial crisis will set chain reactions in motion, so that their financial crisis would become our financial crisis.

Source: Forbes September 15, 2018 18:32 UTC