The Ponzi Economy

Posted on March 11, 2009

There is an excellent Roubini Article today about his response to a reporter seeking comment on Bernard Madoff’s life after pleading guilty.

Roubini’s response highlighted many of the major points I have brought out on this website over the last few years and he quoted at length one of my favorite economists, Minsky, who was the first economist to really articulate the nature of ponzi finance and its role in the modern economy.

It’s a great read. Here is the link to the full article:
http://www.rgemonitor.com/blog/roubini/255955/bernie_madoff_is_the_mirror_of_a_made-off_ponzi_economy

A brief qoute to whet your appetite:

“Americans lived in a Made-off and Ponzi bubble economy for a decade or even longer. Madoff is the mirror of the American economy and of its overleveraged agents: a house of cards of leverage over leverage by households, financial firms and corporations that has now gone bust.”

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