Let me pose you a question. What is the purpose of our financial sector?
So do you think the financial sector is allocating capital to itself (as evidenced by its growth) because the financial sector is itself the highest and best use of capital?
So do you think the financial sector is allocating capital to itself (as evidenced by its growth) because the financial sector is itself the highest and best use of capital?
This is dumb. There a ton of reasons for the financial sector's growth
Such as?
Forgot how much I hate this place and why I quit coming.
On a very macro level to name a few:
- Technology
- Population growth
- Emerging markets
- Fall of Communism
- Declining manufacturing
- Energy
- Priv equity, hedge funds, VC
- Securitization
Don't forget high speed trading. Anybody else read Flash Boys?
Two of those are financial services. Three if you count emerging markets which is due to population growth and financial services industry in those populations.
Sorry you hate your views being challenged.
Two of those are financial services. Three if you count emerging markets which is due to population growth and financial services industry in those populations.
Sorry you hate your views being challenged.
I'm not denying that financial services have expanded. In 1980 PE/hedge funds/VC barely existed. They've obviously grown exponentially in the past 30 years, contributing to a higher % of financial sector GDP.
Do you like Twitter? Facebook? LinkedIn etc etc etc? None of those happen without investor capital. Do you like being able to click and sell a stock? Do you like having a pension fund available to you? Doesn't happen without investor capital.
^yes, that. Everyone loves venture capital and private investment, that is not the point at all.