126 HN points
20 Sep 21
“Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits.” – Hyman Minsky The situation in China went from bad to worse in the past week, with the collapse of Evergrande leading to early signs of significant contagion. By most measures, Evergrande’s collapse is a more meaningful event than Lehman’s implosion, which is why the two words are so closely associated with each other on social media. Whether Evergrande is a catalyst for the next great financial crisis remains to be seen, although the early signs are worrisome.