Thursday, June 15, 2017

Finance is a healthy and necessary parasite according to Michael Lewis

Whats the role of Finance ? Michael Lewis pointed out that Finance is a parasite on commerce, but its a helpful parasite, its a necessary parasite. In other words, you need Finance to move money from the savers to investors. to grease the wheels of Finance. And that really was the spread lending by banks. That's traditional banking. 

But the guys running the banks were not were not satisfied with it and they got involved with all kinds of off balance sheet vehicles, derivative origination's and proprietary trading. A lot of these things that were very troubling and led to the Dodd Frank law regulations and all the banks had to be bailed out. The Banks have gotten bigger and more powerful and the concentration of financial power in this country and I dont think its a terribly healthy situation.