Our current economy is a ponzi scheme

[dfens]

The price of assets such as stocks, bonds, and real estate cannot rise forever.

If that were true, they would rise to infinity, and there would always be another person to buy higher, which means all of us would have infinite wealth just by owning them.

That is patently absurd. This is proven time and time again, yet everyone continues to invest thinking they will be the winners, and not the bag holders.

 

[EdwardBaiamonte]

The price of assets such as stocks, bonds, and real estate cannot rise forever.

If that were true, they would rise to infinity, and there would always be another person to buy higher, which means all of us would have infinite wealth just by owning them.

That is patently absurd. This is proven time and time again, yet everyone continues to invest thinking they will be the winners, and not the bag holders.

yes it can rise forever thanks to inflation and a some what capitalist economy growing at 1-4% a year.

 

[percysunshine]

Eventually, when the sun cools to a carbon cinder, the price of the S&P500 will be zero.

 

[EdwardBaiamonte]

Eventually, when the sun cools to a carbon cinder, the price of the S&P500 will be zero.

unless we're living elsewhere by then

 

[percysunshine]

Eventually, when the sun cools to a carbon cinder, the price of the S&P500 will be zero.

unless we're living elsewhere by then

So, lets make a market in interstellar space travel.

 

[BuckToothMoron]

I wouldn't classify it as a Ponzi scheme, but rather an asset bubble perpetuated by our central bank employing Keynesian economic theory in a futile attempt to defy natural economic cycles.

 

[william the wie]

I wouldn't classify it as a Ponzi scheme, but rather an asset bubble perpetuated by our central bank employing Keynesian economic theory in a futile attempt to defy natural economic cycles.

It could also be the post-Keynesian theory that asset bubbles cause technological bubbles which in turn drives real economic growth. The dare to be dumb economic theories come in many flavors.

 

[Wyatt earp]

The price of assets such as stocks, bonds, and real estate cannot rise forever.

If that were true, they would rise to infinity, and there would always be another person to buy higher, which means all of us would have infinite wealth just by owning them.

That is patently absurd. This is proven time and time again, yet everyone continues to invest thinking they will be the winners, and not the bag holders.

What are you talking about, when minimum wage say....first started it was 25 cents an hour



.

 

[EdwardBaiamonte]

I wouldn't classify it as a Ponzi scheme, but rather an asset bubble perpetuated by our central bank employing Keynesian economic theory in a futile attempt to defy natural economic cycles.

It could also be the post-Keynesian theory that asset bubbles cause technological bubbles which in turn drives real economic growth. The dare to be dumb economic theories come in many flavors.

if we want stable economic growth we should switch to Republican capitalism since it is naturally self-correcting to yield stable economic growth.

 

[BuckToothMoron]

I wouldn't classify it as a Ponzi scheme, but rather an asset bubble perpetuated by our central bank employing Keynesian economic theory in a futile attempt to defy natural economic cycles.

It could also be the post-Keynesian theory that asset bubbles cause technological bubbles which in turn drives real economic growth. The dare to be dumb economic theories come in many flavors.

if we want stable economic growth we should switch to Republican capitalism since it is naturally self-correcting to yield stable economic growth.

I agree that a more capitalistic economy is self correcting, but I would never classify it as stable, and it most certainly provide stable growth. Stable growth is not a natural occurrence.

 

[Jomama]

A Ponzi scheme is not an asset bubble.

 

[william the wie]

Steady growth is not found in plants, animals, scientific advances or in the arts. Smoothing does give that appearance but that is just artifact.

 

[Jomama]

I'd say it's perpetual growth that is not found in anything. Steady growth is quite common and often long lasting, until it's not.