"US Economy Is Based on a Ponzi Scheme" (Excerpt)

"US Economy Is Based on a Ponzi Scheme"

by Michael Hudson

Excerpt: BEN NORTON: "There are more and more signs that we may be on the precipice of another major financial crisis. The former CEO of the Wall Street bank Goldman Sachs warned in an interview on Bloomberg that he can smell another financial crisis on the horizon. Where exactly could this crisis come from? Well, some financial analysts are worried about the private credit industry in the US.

This has exploded in recent years, because after the 2008 crash, banks were more heavily regulated. So more and more firms on Wall Street began to lend to private companies, and the private credit industry ballooned. It is now a $3 trillion industry, yet it is not regulated. And many of these private credit firms have given bad loans to bad companies that are now defaulting. We published a short video explaining the issue with the private credit industry and the fears of a new financial crisis. However, that video is just a brief introduction to the problem.

I thought it would be important to go into further detail explaining the very real danger here. And I thought the perfect guest to interview to help us understand this would be the economist Michael Hudson. Michael is the author of many books, including "Killing the Host: How Financial Parasites and Debt Destroy the Global Economy."

Full, most highly recommended article is here:

- https://www.unz.com/mhudson/

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