Pakistan’s quarter-century Ponzi scheme, and the exit that has no architecture

Long before credit rating agencies existed, there was a simpler test of financial health: can a borrower pay interest from their income, or by borrowing more money? American economist Hyman Minsky gave the failed rating a name: Ponzi finance. And it is worth being precise about it. A Ponzi position is not high debt, or even rising debt. It is the specific condition in which you are paying your interest by borrowing more money. Pakistan has run Ponzi finance for a quarter of a century. From th...

By none@none.com (Ali Hasanain)