Canadian Banks

What are the underlying risks?

Minsky's Ponzi finance theory is a concept in economics that describes a financial system where investors or borrowers take on increasingly high levels of debt to make payments on previous debts, with the expectation that they will be able to repay these debts in the future through further borrowing or asset price increases. This type of behavior can lead to a financial crisis when the system reaches a point where borrowers are unable to repay their debts.