Truth About Markets karmabanqueradio.com C-Span c-span.org
A ponzi scheme, or pyramid is one which directs wealth towards the tip by drawing from the base. The more wealth is drawn towards the tip the larger the base from which its drawn must be. As the need for a larger base expands exponentially, there will be a point at which no more greater fools to feed the expansion. The system will collapse, whether it is the investment fund of Bernard Madoff, a pyramid of financial derivatives built on infinitely rising real estate prices, or the very premise at the hear of capitalism, economic growth. In a finite world, nothing can grow forever. It can only grow by taking wealth from somewhere else, or taking it from the future.