Ponzi Economy Will Lead To Next Crisis
Hallmark of an Economic Ponzi Scheme by John Hussman of Hussman Funds Consider two economic systems. In one, consumers work for employers to produce products and services. The employees are paid wages and salaries, and business owners earn profits. They use much of that income to purchase the goods and services produced by the economy. They save the remainder. A certain portion of the output represents “investment” goods, which are not consumed, and the portion of income not used for consumption – what we call “saving” – is used to directly or indirectly purchase those investment goods. There may be [...]