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The Financial Industy is "winning" at crashing our economy. - Elf M. Sternberg
The Financial Industy is "winning" at crashing our economy.
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.

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6 comments or Leave a comment
From: oldhans117 Date: November 5th, 2012 06:40 pm (UTC) (Link)
Something like 50% of all the MIT graduates go to work for Wall street inventing new derivatives. Not building anything or curing cancer.
atheorist From: atheorist Date: November 5th, 2012 09:18 pm (UTC) (Link)

easter island story debated

Agree - but to nitpick, the easter island story that you reference may not actually be true: http://www.nature.com/news/easter-island-statues-walked-out-of-quarry-1.11613

shockwave77598 From: shockwave77598 Date: November 5th, 2012 09:53 pm (UTC) (Link)
Bankers think that anything which does not make money is not worthwhile. And if I had a cancer cure in my hand right now, it would not be a monthly payment for the life of the patient, so it would not be worthwhile like a TREATMENT would be.

Asking a bank for money so you can shake things up overlooks the fact that the bank is invested into the status quo. Why should they want to tip over their own boat?
caprine From: caprine Date: November 6th, 2012 12:53 am (UTC) (Link)
Off topic: Just saw your contribution to #RomneyDeathRally. For invoking the Bulldaggers, you win the internets today.
elfs From: elfs Date: November 6th, 2012 03:21 pm (UTC) (Link)
Thank you! Yes, I've long loved The Bulldaggers, Ron, Russ, Henry Savaj er Savage Henry, and of course Bugtown.
caprine From: caprine Date: November 6th, 2012 06:56 pm (UTC) (Link)
Don't forget the Caroline clone on alien windwoods!
6 comments or Leave a comment