As we tour the 400 year history of capitalism through its various phases of development
financial system instability is always there lurking in the shadows. The historical record
attests that the processes of aggregating capital for real investment are inescapably
vulnerable to risk manic speculation unserviceable debt and crises and with each episode of
instability a trail of devastation follows. Economic historians such as Hyman Minsky Charles
Kindleberger and others have studied this history and have exposed certain boom-bust patterns
that have a way of stubbornly repeating themselves.This book posits that the large-scale
financial crises that the world has experienced over the last 30 years are more or less the
latest segments in this narrative but with some distinct characteristics. In the period
spanning the stock market crash of 1987 to the banking crisis of 2008 and its aftermath - the
Greenspan Era - there were key institutional and ideological developments rooted in
contemporary neoliberalism that have reshaped the historic rise-and-fall patterns to become
more severe and widespread. In this important volume Magnuson suggests the next episode will
be a massive financial cyclone that will send us all tumbling toward a perilous future.
