Michael Hudson Calls the Stock Market a Ponzi Scheme in a Conversation With The Harper’s Blog 2017

He is well known for predicting the housing collapse in 2006 when he released his unique and simple to understand illustrated report titled, “The New Road to Serfdom, An illustrated Guide to the Coming Real Estate Collapse”

From The Harper’s Blog

Distinguished Professor of Economics at the University of Missouri-Kansas City, Michael Hudson

“[But] you could say that the whole stock market is a kind of a ponzi scheme, because $4.3 trillion has been provided to the banks by the Federal Reserve in quantitative easing to keep the interest rates down. So if you’re a good bank customer, you can borrow from the bank at 2 percent, you can borrow to take over a company or to buy stocks or to buy risky bonds that are yielding more, and you can make an arbitrage. That is, you can make in dividends or interest more than you have to pay”. Read more

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