Ponzi schemes pay returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.
Uncontrolled spending , and massive budget deficit financing funded by monetary easing, or quantitative easing or money printing over the longer term is not much different !
Two of the top market gurus have issued further warnings
- 08-Jul – Ace value investor Sampat sees coming of economic storm
- 08-Jul – Sell equity & bond, hold cash as more gloom ahead: Faber
Ajay Shah has a good post on effects of withdrawal of stimulus in the us