NYSE - LSE
| RYCEF | -1.05% | 14.35 | $ | |
| RBGPF | -0.11% | 74.92 | $ | |
| CMSD | -0.51% | 23.51 | $ | |
| AZN | -0.15% | 74.48 | $ | |
| GSK | -0.96% | 37.32 | $ | |
| BTI | 0.52% | 55.84 | $ | |
| SCS | -3.88% | 15.96 | $ | |
| CMSC | 0% | 23.07 | $ | |
| SCU | 0% | 12.72 | $ | |
| RIO | -0.5% | 59.7 | $ | |
| NGG | -0.51% | 72.28 | $ | |
| JRI | 0.45% | 13.26 | $ | |
| VOD | 0.54% | 11.1 | $ | |
| BCC | 4.68% | 86.77 | $ | |
| BCE | 1.06% | 23.56 | $ | |
| RELX | -2.73% | 50.59 | $ | |
| BP | 3.3% | 33.6 | $ |
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?
