A healthy economy isn’t built on asset bubbles and debt pyramids

In the animated Soviet film The Golden Antelope, inspired by Indian folklore, a magical antelope tries to save a boy from a greedy raja by promising him as much gold as he wants. When she asks whether there can be too much, the raja laughs: “You can never give me too much gold.” But when the gold begins to bury him, he cries “enough” – and loses everything.
Today’s financial system risks repeating the raja’s mistake. For too long, rising nominal wealth, asset prices and the fortunes of the ultra...