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Hedge, Speculative or Ponzi

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Hedge, Speculative or Ponzi

Hyman Minsky taking Celsius' temperature

Luiz Ramalho
Jun 13, 2022
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Hedge, Speculative or Ponzi

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One of the darling businesses of the last cycle, having raised a total $850M+ in venture funds, centralized crypto lending platform Celsius just froze account withdrawals amid today’s selloff.

This reminds me of Hyman Minsky’s three-part taxonomy of finance, described below in this excerpt from the latest edition of the book “Manias, Panics and Crashes” by Charles Kindleberger.

During crisis, hedge businesses can become speculative.

And speculative businesses can quickly become ponzis.

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Hedge, Speculative or Ponzi

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1 Comment
Gabe Wise
Writes art i like
Jun 13, 2022

hm 👀

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