Finance & Fury Podcast

Welcome to Finance and Fury the Furious Friday Edition On the last episode we talked about the City of London Corporation, a mini plutocracy Today we are exploring at what point does a financial sector state to crowd out real economic growth? Referred to as the ‘financial curse’ I have found some contradictions to my previous beliefs – research shows a tipping point Why is finance important? We all use it Each economy has stages with a financial system Reaches an optimal size Beyond this point a financial system starts to inflict damage Profitable techniques start to impact the creation of wealth There is a limit to useful roles of a financial system The Tipping Point: Financial crisis Supporting the creation of wealth vs extracting it from other parts of the economy Shaping laws, rules, thinktanks and culture The damage it does Measurable impact: link to database Finance becomes a net drag on GDP growth and productivity – misallocation of resources Negative relationships between rate of financial secto