We knew it would happen. In a rather ridiculous story in the Wall Street Journal, “industry analysts” sound off on the future impact of the finance industry on the domestic economy. The death knell is all but sounded. One source provides the following penetrating insight: “From a societal standpoint, we got carried away with finance.”
I realize they mean a decrease in finance’s role as a percentage of GDP, but even then the article is a stretch. Yes, the bubble has burst, and near-term numbers will obviously decline, but as a long-term trend? Not a chance. As I’ve mentioned many times before, Maggie Mahr’s “Bull: A History of the Boom” should be required reading for every journalist before they even consider putting pen to paper. Globalization, technological innovation, boomer retirement and scientific advances (which the National Academy pegs at seven fold in 20 years) will combine to ensure “the business of borrowing, lending and investing” will continue.