In a recent article, Reuters asked the question, "Are the Big Banks Winning?" The article isn't about success; it's about whether or not the banks are avoiding regulation and becoming more powerful, despite the best efforts of the Obama administration, hampered as it has been by the plutocrats' fingers in Congress. It's about short-term "winning" which will ultimately crash the economy for most of us. The plutocrats don't care; they can go live in their gated paradises surrounded by guard labor, and the rest of us can get by in our slums and swamps as best we can, enjoying whatever trickle our masters toss at us.
But what caught my eye was this line: "No country can achieve a high rate of growth without a well-functioning financial system. ... An outsized financial sector expansion can actually reduce economic growth, according to their data. This relationship holds for country after country, and the tipping points are fairly consistent. When private credit grows to between 90 percent and 100 percent of gross domestic product, it is tilting toward too big."
Now that the financial sector is so big, it's only goal is to spiral upwards in pursuit of more and more money, taking with it like a wind funnel all the cash that would otherwise go to servicing the manufacturing and service industries of the United States. These places are being starved for capitol and credit, and there's no promise that anything we small investors do will help them off the ground.
A friend of mine recently went to work for Wall Street. He was a brilliant developer who had worked on a mapping project (not for Google or Apple, so don't blame him!) and I had asked him for help with my own mapping project. (Developers do this all the time, turn to our masters for "where can I learn more about..." tips and tricks). He'd forgetten everything he knew about it because he was now working for a hedge fund, doing what he does. If what he does is mirrored across my industry, then the people who could be solving cancer, or improving internet access, or unravelling the mysteries of fusion, or whatever-- are caught in the financial windfunnel.
So, if the financial industry is "winning," it's winning the way the citizens of Easter Island "won" in placating their gods... by destroying the ecosystem that kept them alive.
But what caught my eye was this line: "No country can achieve a high rate of growth without a well-functioning financial system. ... An outsized financial sector expansion can actually reduce economic growth, according to their data. This relationship holds for country after country, and the tipping points are fairly consistent. When private credit grows to between 90 percent and 100 percent of gross domestic product, it is tilting toward too big."
Now that the financial sector is so big, it's only goal is to spiral upwards in pursuit of more and more money, taking with it like a wind funnel all the cash that would otherwise go to servicing the manufacturing and service industries of the United States. These places are being starved for capitol and credit, and there's no promise that anything we small investors do will help them off the ground.
A friend of mine recently went to work for Wall Street. He was a brilliant developer who had worked on a mapping project (not for Google or Apple, so don't blame him!) and I had asked him for help with my own mapping project. (Developers do this all the time, turn to our masters for "where can I learn more about..." tips and tricks). He'd forgetten everything he knew about it because he was now working for a hedge fund, doing what he does. If what he does is mirrored across my industry, then the people who could be solving cancer, or improving internet access, or unravelling the mysteries of fusion, or whatever-- are caught in the financial windfunnel.
So, if the financial industry is "winning," it's winning the way the citizens of Easter Island "won" in placating their gods... by destroying the ecosystem that kept them alive.
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