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Maybe Ponzi scheme is too loaded a term but both have the same failure mode. At some point people will wise up and demand some real returns. It might not collap
by newswasboring 5y ago
Maybe Ponzi scheme is too loaded a term but both have the same failure mode. At some point people will wise up and demand some real returns. It might not collapse but it will stop growing and there will be a knock on effect as so much of it is taken on leverage.
- nightski 5y ago"Wising up" is just the stock price going down. Happens all the time. Dividends are also paid regularly, which is real money in the investors pocket.
- newswasboring 5y agoBoth Tesla and Amazon have never payed out a dividend even though they have had profitable quarters. Plenty other companies have never even had a profitable quarter. Yet the stock price keeps going up.
- deleted 5y ago[deleted]