All eyes have turned to Egypt as the political situation has caught the world’s financial markets off guard. The turmoil in Tunisia was merely a blip on the radar screen but the significance of Egypt is an entirely different matter. So much capital has been thrust at maintaining the status quo in Egypt that many financial analysts have been lulled into a pre-Minsky complacency: Stability breeds a false sense of comfort. The emerging markets have been the repository of the Bernanke QE2 program as low rates have led to the search for higher yields and let potential risk be damned or rather rationalized away by dusting off the models of Long Term Capital Management.