ClimateMinskyMoment

UmairHaque

Minsky ... came up with a theory which said that markets could suddenly lose confidence, if the value of assets was revealed to be much lower in reality than on the books, in a moment. Economists didn't take this seriously, and neither did Wall St ... And then came the Great Recession of '08. Remember what happened then? The housing market plummeted—just the way Minsky said: many loans were revealed to be junk, had gone bad, couldn't be repaid. The economy seized up. That was a MinskyMoment—it happened, and now, Minsky's revered amongst econ and finance nerds.

So what's a "Climate Minsky Moment?" The thinking now–like that advanced in this research by the Institute of Actuaries–is that climate change is setting us up for a similar effect to the Great Crash of 2008. Assets (buildings, investments, homes, money itself, everything) are overvalued, because models aren't accounting for risk well, accurately, severely, hard enough.

https://www.theissue.io/how-bad-is-climate-change-going-to-get-you-dont-want-to-know/