A summary of this section of the blog.
Huge concentrations of wealth have distorted and destabilised financial markets, which now need to be reformed.
A summary of Pozsar’s conclusions on what we need to do about wealth inequality destabilising our economy.
How rising wealth inequality, leading to dramatic growth in institutional cash pools, has led to an unbalanced and unstable economy.
How the rise in wealth inequality means that households now borrow from businesses, not the other way around.
What is “repo” and what is its connection to the rise in wealth inequality and economic instability?
Where do institutional cash pools come from, and why does it matter?
A summary of Zoltan Pozsar’s work, showing how a tidal wave of wealth has gathered in institutional cash pools unnoticed by economists.