Long article. I enjoyed it. "The tail is wagging the dog".
Over-financialisation – the Casino Metaphor | Feasta
My favorite paragraph -
Quote:
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The challenge for interstitial initiatives is the sheer pervasiveness of the FE. There are few spaces left where the effects of the FE can be ignored. They may not be well understood, but whenever we pursue dreams, they pop up in front of us, usually as obstacles. Developments that are most heavily attacked by the FE establishment perhaps merit the most attention – community scale renewable energy, crypto currencies, co-ops, the sharing economy, and so on. The more these alternative directions are attacked as utopian or uneconomic the more we can be sure they offer promising interstitial opportunities.
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Here FE is Financialized Economy. The Mortgage Backed Securities fiasco would be an example of where the FE went wrong. The article talks about how the RE (Real Economy) is like the outside world to the FE and the FE is a casino. My take away lesson from that parable is that the RE could get along okay without the FE, but not the reverse.