Minsky moment ahead? More economists are warning about the possibility

JPMorgan's Marko Kolanovic has warned as early as March that bank failures, market turbulence, and ongoing economic uncertainty amidst central banks' efforts to combat high inflation have heightened the likelihood of a Minsky moment.

Ludovic Subran of Allianz: "We have all the ingredients of a so-called Minsky moment."

James Montier at GMO's asset allocation team noted that most markets appear to carry the fingerprints of a "slow burn Minsky moments" today.

James Montier coined the term "slow burn Minsky moments" in his latest research. He suspects the rolling financial crisis is due to a massive build-up of private sector debt, with very high rates of credit growth and leading to a credit bubble. In other cases, these build-ups remain dormant and unnoticed until a crisis, when they suddenly act as amplifiers, leading to a sharper downturn than would otherwise be the case, the so-called "slow-burn Minsky moments.

As James Montier said, "Credit creation plays a major role in the development of a bubble."

"The tech sector is officially in a bubble," Citi said.

"Everybody's problem now is the very abrupt tightening, but then there is an additional layer of wrong risk management" he further noted the potential problems with non-bank lenders' commercial real estate loans that aren't subjected to the same regulations as banks.