So says Nassin “Black Swan” Taleb in Businessweek.
The problem is getting runaway. It’s becoming a pure Ponzi scheme. It’s very nonlinear: You need more and more debt just to stay where you are. And what broke [convicted financier Bernard] Madoff is going to break governments. They need to find new suckers all the time. And unfortunately the world has run out of suckers.
Do you have any thoughts on the U.S. financial reform package?
I don’t like complicated regulation. I think we should not need financial reform. What we need is definancialization. What we need to do is break the financial community’s grip on society. And you can do it very easily by transformation of debt into equity. Banks have an interest in building debt, but equity in society is vastly more stable than debt.