BANKING | LIFE LESSONS | MONEY
Financial Sector Explained
Are we heading to the next crisis?
There is something suspicious about the financial sector and how it works. I wanted to know more about it. Do you know how it works, and does it produce anything, anything at all?
In my search for answers, which are not very easy to find, because clearly not enough people are searching for these kind of answers, so naturally Google’s search engine algorithm didn’t know how to guide me there.
But I managed.
I found out how it works, or actually doesn’t work, but to respect your attention span I’ll only refer to the particularly bright article “Finance Is Not the Economy” from Evonomics. This article has been created, researched, and quoted by real professionals in the field of economics.
After reading the below, in the end of this story I’m welcoming everyone to a challenge.
Here are some hand-picked extractions, which even for me (English isn’t my mother tongue, nor have I a degree in Finance) were clearly understood, although I admit most of the text I had to read twice to believe it:
The financial sector does not produce goods or even “real” wealth. And to the extent that it produces services, much of this…
