Hyman Minsky – Can “It” Happen Again

In a nutshell (301 pages), this is a seminal piece of work by Hyman Minsky that probably no one has read. You can tell when someone hasn’t read it when someone speaks authoritatively about bubbles or crashes and is completely wrong. This is the book that the Minsky Moment comes from and lays out very clearly (but not easily) how companies and economies from stable to bust.

What I got out of it

After years of listening to people speculate on whether a bubble exists, whether a bear market or recession is coming, etc. this book very convincingly explains how these things happen. The best part is that you don’t need advanced math or a degree in economics to understand it.

What was difficult

You do need a basic knowledge of business and economics to make this book worth while. Most people will come to this book hoping to learn how to forecast future crashes. They will not be disappointed. The first chapter covers everything that most people would want to learn. The rest of the book, while incredible, and you will learn a ton, is not easy reading. It’s not just a ‘non-fiction’ book, it’s a textbook for learning.

Recommendation

If you handle your own money, or want o understand how it is managed (or should be), then you must read this book, at least the first chapter. If you run a business of any size, you must read this book in its entirety. Just be aware that you are reading this purely for learning, it is not a popular non-fiction book, but it is important.