The market had entered what Hyman Minsky, an economist who specialized in financial manias, termed the stage of “revulsion.” This takes place at the very peak of a bubble. Investors realize the game is almost up, and they become more discriminating. Some discreetly cash in their gains. The market has some good days, and it may even rise further, but it also becomes increasingly volatile amid the general recognition that the easy money has already been made.
