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 int