Financialization Overload

Financial services serve a crucial function within an economy. But what happens when the financial tail becomes so large that it begins to wag the economic dog? Many analysts believe that we’re well beyond that point. What are the indicators? What are the implications? Where do we go from here? We’ll explain.

There’s no question that the financial industry is critical to the strength of the economy. Without it, many businesses wouldn’t be able to raise the capital they need to hire more employees, invest in.....