Monday, June 30, 2014
The Global Financial Ponzi Scheme
This has become Adam Smith's invisible hand with a vengeance. Of course those at the top of the credit bubble get to play king maker, but they are also in no meaningful form of control beyond managing their own appetites. Just how long such a group can sustain this remains to be seen and unfortunately well tested.
Recall that sitting on top of this monster, each day you have a massive pool of available credit to put out somewhere and somehow. Sheer size makes investigation and quality pretty chancy. Worse every time you get something right, you are expected to repeat. Good luck on all that.
By Michael Snyder, on June 11th, 2014