Where did the growth come from?

Reader comment on: Sheila Bair's Latest

Submitted by Jeff (Switzerland), Mar 9, 2010 04:06

"In fact that financial sector is investing in the rest of America, whether it is mortgage brokers financing new home construction or venture capitalists investing in Google or private equity funds turning around companies or investment banks underwriting new public offerings."

Which of those legitimately productive financial activities weren't going on 20 years ago? Those aren't the "growth" sectors of finance - the expansion of the financial industry has had nothing to do with funding home construction, venture capitalism, turning around companies or IPOs. Finance's profits have come from, among other things, turning houses into ATMs, selling insurance coverage they weren't good for, and proprietary trading. What good have those done for us?

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