when covid 19 arrived in 2020 it exacerbated chinese companies already high debt levels as it lowered macroeconomic growth with overleveraged balance sheets many chinese companies struggled to service debts which had fueled speculative investing while china tried to manage the crisis in 2024 the bankruptcy of evergrande group the chinese real estate looked to some as if it was finally setting off the minsky moment meanwhile the pandemic aftermath in china unfolded largely as minsky s framework would predict more inefficient construction projects lower interest rates financial firm bailouts and the squeezing of private corporations 
for readers of minksy revelations about evergrande s and other developers apparent ponzi financing schemes were perhaps a bit on the nose given the name of his third credit cycle with real estate demand declining the system has unraveled some analysts predict the scale of the crisis resembling japan s 1990s lost decade could impede china s growth and competitiveness for years in early 2023 experts quickly reached for minksy s terms worried about the hit the u s financial sector took as several regional banks collapsed and faced bank runs the events surrounding the collapse of silicon valley bank among other troubled financial institutions caused some to diagnose a minsky moment as these banks were taking ever riskier bets with their lending and financing fortunately though painful for those involved the episode turned out largely self contained more recently the international monetary fund has joined a chorus of those issuing warnings of high global debt levels and the potential for a financial crisis while this has not yet come about there are warning signs the u s has had an extended period of economic prosperity rising debt levels and speculative market activity as the s p 500 and dow jones industrial average have broken all time records nevertheless speculation does not yet seem to be at the extreme levels that presage a minsky moment though time will tell 