NYSE - LSE
| SCS | 0.12% | 16.14 | $ | |
| RYCEF | -2.69% | 16.7 | $ | |
| RELX | -2.28% | 37.505 | $ | |
| NGG | 0.17% | 84.45 | $ | |
| VOD | 0.29% | 14.542 | $ | |
| RIO | -0.03% | 92.88 | $ | |
| CMSC | -0.23% | 23.745 | $ | |
| RBGPF | 0% | 82.4 | $ | |
| AZN | -2.62% | 93.16 | $ | |
| CMSD | 0.18% | 24.14 | $ | |
| BCE | 0.35% | 25.61 | $ | |
| BTI | -0.91% | 59.796 | $ | |
| GSK | -1.2% | 50.2 | $ | |
| BCC | -1.03% | 80.91 | $ | |
| JRI | -5.19% | 13.005 | $ | |
| BP | 0.15% | 37.675 | $ |
Finance’s Role in Economic Ruin
The finance industry, often hailed as the backbone of modern economies, has a darker side that increasingly threatens global stability. Since the 2008 financial crisis, triggered by reckless speculation in mortgage-backed securities, the sector’s unchecked growth has sown seeds of destruction. In the United States alone, the financial sector’s share of GDP rose from 2.8% in 1950 to 8.4% by 2020, yet it produced no tangible goods, instead profiting from debt and risk. Critics argue this shift diverts capital from productive industries like manufacturing—down from 27% to 11% of US GDP over the same period to speculative bubbles.
The 2023 collapse of Silicon Valley Bank, fuelled by over-leveraged bets on tech stocks, cost $20 billion in bailouts and sparked a domino effect across European markets. In the UK, the 2022 mini-budget crisis, exacerbated by hedge fund short-selling of gilts, pushed borrowing costs to record highs. Economist Ann Pettifor warns, “Finance thrives on instability it creates”. With global debt at $305 trillion—three times world GDP—experts fear the industry’s pursuit of profit through complex derivatives and high-frequency trading could precipitate another crash. Is finance an engine of growth or a wrecking ball?
