During the recent discussion about crypto-currencies on Richard C.Hoagland's "The Other Side of Midnight" radio show we ran out of time to discuss the subject of "The Curse of Economic Financialisation". (This article continues after the following hyperlink).
The audio and picture links for that show can be found here -
It seemed a shame to waste the slides I had prepared about this topic, so I'm creating a short article about it in this post.
The Curse of Economic Financialisation
The next chart shows how (after 1980) the growth in the American banks' financial trading began to far outstrip its lending to businesses and households.
This chart shows how the financials sector's share of American corporate profits grew to a dis-proportionate size when compared to its share of American employment.
The next chart shows how much more quickly incomes in the financial sector grew compared to those in the rest of the economy prior to the 2008 financial crash.