Guggenheim Says Central Bank-Driven ‘Ponzi Scheme’ Must Collapse

It can’t continue forever. But it can continue for a long time.

(From Bloomberg)

The Guggenheim Partners investment chief likened the inflation of asset prices caused by the loose money policies of central banks to a “ponzi scheme” that eventually must collapse. “We will reach a tipping point when investors will awake to the rising tide of defaults and downgrades,” he wrote in a letter from the World Economic Forum meeting.