Hyman Financing

According to Hyman Minsky, an American economist, in prosperous times corporate cash flow rises beyond what is needed to pay off debt. This results in speculative lending that goes beyond what borrowers can pay off from their incoming revenues. This results in a crisis, which results in a drop in lending, even to companies that can afford the loans, and the economy contracts.
Ponzi Finance (Mint)
Minsky said balance sheets and cash flows go through three stages, which he termed hedged finance, speculative finance and ponzi finance.
In the first stage, hedge finance, the cash flows generated from operations are enough to meet all financial obligations of a company. But as an economy grows, companies tend to take more risks. They move to the second stage—speculative finance. Here, their cash flow is enough to cover only debt payments; the actual debt is rolled over rather than repaid. Then there is the final stage of ponzi finance, when the cash generated from operations is not even enough to cover interest payments. The company either has to borrow more or sell off its assets to service its debt.
Ponzi finance is the last stage before a financial crisis and, after the crisis, companies go back to the first stage of hedge finance. And then the process starts all over again. Minsky has in recent years developed a following in the investment community, especially among the “world is a bubble” crowd.