Our Financialized Economy

"What is financialization? Simply put, it is finance infecting and hollowing out all levels of an economy by incentivizing leverage, debt, opacity, speculation, financial fraud, collusion and the perfection of crony capitalism, i.e. financial Elites' ownership of the government's regulatory and legislative bodies. Here is another less pungent description via Wikipedia:"Financial leverage overrides capital (equity) and financial markets dominate traditional industrial economy and agricultural economics."

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Financialization is like the bubonic plague--it constantly needs new victims as it kills off its existing hosts. Housing? Dead, killed by financialization, aided, abetted and powered by the Federal Reserve. Now the Fed wants to "save" what it already killed via financialization--housing--by buying $1 trillion in plague-infested mortgages and brute-force efforts to keep interest rates below inflation, i.e. negative rates."



http://charleshughsmith.blogspot.com/2012/03/our-lets-pretend-economy-lets-pretend_08.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+google%2FRzFQ+%28oftwominds%29