Ponzi nation

Low volatility and easy credit are boosting asset prices. But according to the late theorist Hyman Minsky, today's stability may be sowing the seeds of its own demise.

Credit has grown rapidly in recent years. This expansion has come in many forms, from home mortgages to newfangled structured products created by clever financial engineers. There are, broadly speaking, two views about these developments. The conventional wisdom -- held by most economists and denizens of Wall Street -- is optimistic. Higher rates of credit growth and increasing levels of leverage, they maintain, are reasonable in light of increasing economic stability.

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Source: Thanks to NNejad from MSN BRK Board for the original reference