And, of course, in the early 2000s, the Fed's easy-money bias spawned a monstrous credit bubble
, which subsidised the leveraged monetisation of housing-market froth.
The last time this happened was May 2006 at the height of the Wall Street credit bubble
that culminated in financial Armageddon two years later.
But while hedge funds sometimes refer to Minsky in warnings about a China credit bubble
threatening the global economy, China has so far proven doomsayers wrong.
This compared with 12% of all customers and the group is demanding a clampdown amid fears of a potential credit bubble
. Households have accrued PS200billion in unsecured debt, with PS67billion on credit cards.
They stressed there was no evidence a consumer credit bubble
The Philippines will withstand a credit bubble
as well as economic slowdown in China given relatively lower exports to the mainland compared with other countries in the region, according to the London-based economic research firm Capital Economics.
The catalyst has been Beijing's belated effort to bring an enormous credit bubble
While Germany's external surplus, at 8% of GDP, is big --too big--it is not the result of currency manipulation by Germany The real culprits are an inflationary credit bubble
in southern Europe, the expansionary policies of the European Central Bank, and the financial products US banks sold to the world.
This poses a credit bubble
risk, caused by hefty lending to state- owned enterprises and local governments in China.
According to a recent McKinsey study, in the seven years since the bursting of a global credit bubble
that resulted in the worst world financial crisis since the Great Depression, overall global debt has increased by around US$60 trillion, or by some 17 percentage points of global GDP.
THE BIG SHORT (15) DIRECTOR Adam McKay draws inspiration from Michael Lewis' non-fiction account of the housing and credit bubble
to dramatise the incredible true story of the men who made a killing by wagering against the US economy.