Excerpt from Term Paper:

...... Minksy also hypothesized that as capital markets mature they became
increasingly unstable. He espoused that investments that become more
speculative also leads to a heightened instability. Ultimately, the
instability culminates in a market correction. In this case the market
correction took place in Japan


"This decade's great credit bubble really got underway the morning of
Jan.2. That's when Asian markets began selling off as investors worried
that the fallout from the relatively obscure sub-prime sector had spread
into the broader economy" (Sanford, 2008, p. 53). The effects of the Asian
market sell-off quickly spread in dramatic fashion to stock indexes from
"Tokyo to Toronto, where Canada's national exchange plunged 605 points"
(Sanford, p. 53). The severity of that correction is in direct correlation
to the severity of the excess brought about by the speculative nature of
the investments, and in this case, according to the market's reactions, the
speculative nature was very speculative indeed......

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