World Markets Face ‘Minsky Moment’ Danger, Allianz Says
- Banks, commercial real estate risk a ‘financial accident’
- This isn’t 2008 replay, but a bumpy ride looms, economist says
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Investors should brace for months of market readjustments overshadowed by the threat of a new “financial accident,” according to Allianz chief economist Ludovic Subran.
“We have all the ingredients of a so-called Minsky moment,” he told Bloomberg Television on Monday, referring to economist Hyman Minsky’s description of a precipitous drop in asset prices after a build-up of debt. “You see that everywhere, these liquidity pools or liquidity crunches are starting to be visible.”