NYSE - LSE
| CMSC | 0.04% | 24.18 | $ | |
| SCS | -1.95% | 16.89 | $ | |
| NGG | 0.02% | 70.435 | $ | |
| BP | 0.83% | 34.195 | $ | |
| AZN | -0.35% | 81.275 | $ | |
| GSK | 1.96% | 40.85 | $ | |
| BCC | -4.01% | 85.59 | $ | |
| BTI | 0.3% | 56.36 | $ | |
| RIO | -2.87% | 61.941 | $ | |
| RYCEF | -0.89% | 14.65 | $ | |
| RBGPF | 2.38% | 77.27 | $ | |
| CMSD | -0.12% | 24.36 | $ | |
| BCE | -0.76% | 24.205 | $ | |
| VOD | 0.55% | 11.865 | $ | |
| JRI | 0.36% | 13.78 | $ | |
| RELX | -0.28% | 47.18 | $ |
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?
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