Is it worth giving unlimited power to a fewto create perceived safety for many?

Ponzi finance units must increase outstanding debt

in order to meet financial obligations

 

A transition occurs over the course of an expansion

as increasingly risky positions are validated by the booming economy

that renders the built in margins of error superfluous

encouraging adoption of riskier positions

 

Eventually, either financing costs rise

or income comes in below expectations

leading to defaults on payment commitments

 

Hyman Minsky