With the Wealthy Pessimistic Who Will Support Ponzi Finance?

Fading confidence in a confidence game spells doom.

Of the fragrance of your good ointments,
Your name is ointment poured forth;
—Song of Solomon

* * * * *

With affluent Americans increasingly pessimistic about the U.S. economy from where will come new investment capital needed to prop up collapsing finance of old?




Someday soon the CNBC crew might actually grasp the power of leverage in reverse and fathom how consumer spending thought economically supportive actually represents a diversion from that added leverage necessary to postpone a Ponzi scheme's implosion: our securities-based global financial system. Such is the continuing action speaking louder than words failing to appreciate the time element associated with a gigantic mountain of fixed liabilities and the persistent will to rally around contract law principles no matter how unproductive the financial claim.

—Tom Chechatka