I appeared on an episode of the Nation’s excellent podcast “The Breakdown,” hosted by Chris Hayes. The episode is about finance and the financialization of the economy, and the title is The Breakdown: Are Financial Institutions Holding Our Economy Hostage?
During the 2008 financial meltdown, we were told by politicians, economists, bankers and industry executives that further implosion of major financial institutions would wreak havoc on the larger economy. The banks were “too big to fail,” we were told, and if the financial markets faltered, that would be bad for the rest of us. But since the financial gains of the past several years haven’t trickled down, many are wondering why we continue to be held captive by the same financial system that caused the mess in the first place. On this week’s edition of The Breakdown, finance blogger Mike Konczal joins DC Editor Chris Hayes to discuss what’s behind this “financialization” of the economy, how it happened and whether there’s anything that can be done to change it.
We talk a lot about the role of finance in the economy and how it’s changed over the past 30 years. I hope you check it out. You can subscribe to The Breakdown on iTunes here and I recommend you do so – it’s something I always check out. (And when I hear the song Sinnerman I immediately think of the podcast.)
If you want to learn more about the topic, some recommended links:
– Adair Turner’s 2010 speech, What Do Banks Do, What Should They Do and What Public Policies are Needed to Ensure Best Results for the Real Economy? Great speech, excellent introduction.
– The collection of research essays Financialization and the World Economy edited by Gerald Epstein (introduction chapter is here). The book features essays by Jane D’Arista and former Roosevelt Institute fellow Arjun Jayadev among many others.
– Thomas Palley’s essay Financialization: What it is and Why it Matters (2007).
Professors Epstein, D’Arista and Palley will be speaking at Roosevelt Institute’s Future of the Federal Reserve event next week, and the role of the financial sector and financial regulation as a macroeconomic concern will definitely be covered. There are a few spots left that you can sign up for via email at the link, and you’ll be able to watch it online afterwards.