Wikipaedia defines the Minsky moment thus:
A Minsky moment is a situation in which investors who have borrowed too much are forced to sell even good assets to pay back their loans. In economic terms, it is the point in a credit cycle or business cycle when investors have cash flow problems due to spiraling debt they have incurred in order to finance speculative investments. At this point, a major selloff begins due to the fact that no counterparty can be found to bid at the high asking prices previously quoted, leading to a sudden and precipitous collapse in market clearing asset prices and a sharp drop in market liquidity.
In retrospect, this past week might be pin-pointed as the Minsky moment for Australian housing.
The CBA rate rise and the other banks' bizarre silence, Chris Joye's freaky $100 million bet, and Ray White's failed Sydney Opera House auction form such a poetic moment of greedy overreach that it is totally irresistible.
This blogger is not even going pretend it's likely to be right. But something is happening. This blog, Delusional Economics and The Unconventional Economist, have all experienced unprecedented traffic spikes and flows this week.
Canberra had better rush its RMBS bailout.