“The 6.6% real return belied a commonsensical flaw much like that of a chain letter or yes — a Ponzi scheme. If wealth or real GDP was only being created at an annual rate of 3.5% over the same period of time, then somehow stockholders must be skimming 3% off the top each and every year. If an economy’s GDP could only provide 3.5% more goods and services per year, then how could one segment (stockholders) so consistently profit at the expense of the others (lenders, laborers and government)?”I know he's a smart fellow but I don't think he understands wealth creation. I think he's an economic Malthusian.
Could be wrong, admittedly.
If Bill Gross says equities are dead, 2013 will be a huge year for equities! Do the opposite of what Gross recommends and you’ll be rich.
LLS