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Would you agree that the UK economy is like a giant Ponzi scheme?
Albert Edwards, a strategist at Société Générale, likened the British economy to a Ponzi scheme — a fraudulent debt mountain like that allegedly used by the New York hedge fund manager Bernard Madoff.

Would you agree?
Please give reasons for your response.

PS. I'm being generous with the Brownie points - only 31 days left to spend them!
asked in ponzi, uk, economy

blacksmith81 answers:

Definitely, this has been my thinking, for at least the last 10 years or more.

The idea that a Service Sector dominated economy, could replace an Industrial Economy, to my mind sounds absolutely ludicrous and still does.

The dot.com crash in the early part of this decade, proved, if nothing else, that the idea of Notional, rather than Actual wealth, as a basis for business, was tantamount to financial suicide. Not unlike the Mississippi Bubble of 18th Century France.

When will they realise, that you can't defy the Laws of Physics? A bubble, or a balloon, can only be inflated so far. Until just 1 molecular bond fails, which starts a catastrophic cascade of failure.

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high1971 answers:

never a true statement said

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