Thursday, April 21, 2011

America's Fiscal Dead End: A 2013 "Minsky Moment"

by Tyler Durden

Often times we are amazed that Deutsche Bank's Peter Hooper works in the same place as that other "economist." The reason is that yesterday, Hooper, who tends to have some of the most original sellside thoughts, came out with one of the best summaries of America's fiscal dead end:an 8 page summary far more accurate and detailed than anything to ever come out of the rating agencies, yet one which reaches the correct conclusion. What is startling is that a Wall Street institution (well technically desk.... there is of course that other "economist") is willing to come to grips with the truth. Which according to Hooper is rather ugly: America may have 2 years at the most before it all comes crashing down when the world's former superpower hits its own Minsky Moment.

"It's more like a Wile E. Coyote moment. We left the edge of the cliff a while back... now we're blinking and looking down..." - Popo

http://www.zerohedge.com/article/americas-fiscal-dead-end-2013-minsky-moment

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