The growth of finance is not endlessly sustainable, because it creates a gradually growing cost problem for those who pay the cost that is income to finance. This growing cost problem at some point begins to reduce economic growth, which creates a second problem: declining income for those who pay the cost that is income to finance.
On the one hand the increasing cost of finance, and on the other declining income growth in the non-financial sector: Together they work like a vise, squeezing the sector that is the source of income to finance.
The irony is that finance itself is the source of the cost problem ...
Wednesday, February 5, 2020
Snippets: Finance is unique
From mine of 3 January:
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