Money, Finance & Parasitoids
Money, Finance & Parasitoids

We examined the parasitoid nature of much of our privileged elite here. This post does the same for much of the financial sector. Money quotes being:

Here, instead, is the fable we’ve been offered: Sad as it might be for some workers, towns, cities, and regions, the end of industry is the unfortunate, yet necessary, prelude to a happier future pioneered by “financial engineers.” Equipped with the mathematical and technological know-how that can turn money into more money (while bypassing the messiness of producing anything), they are our new wizards of prosperity!

Unfortunately, this uplifting tale rests on a categorical misapprehension. The ascendancy of high finance didn’t just replace an industrial heartland in the process of being gutted; it initiated that gutting and then lived off it, particularly during its formative decades. The FIRE sector, that is, not only supplanted industry, but grew at its expense — and at the expense of the high wages it used to pay and the capital that used to flow into it.


For more than a quarter of a century the fastest growing part of the economy has been the finance, insurance, and real estate (FIRE) sector. Between 1980 and 2005, profits in the financial sector increased by 800 percent, more than three times the growth in non-financial sectors.

In those years, new creations of financial ingenuity, rare or never seen before, bred like rabbits. In the early 1990s, for example, there were a couple of hundred hedge funds; by 2007, 10,000 of them… Fifty thousand mortgage brokerages employed 400,000 brokers, more than the whole U.S. textile industry. A hedge fund manager put it bluntly, “The money that’s made from manufacturing stuff is a pittance in comparison to the amount of money made from shuffling money around.”

Wealth comes from production, not its taxation – by government or the financial sector. If money printing dilutes the existing stock of money in relation to goods, effectively “taxing” and devaluing existing money, then the creation of credit money by the financial sector has the same effect. If one is bad, then so is the other. Government might be a poor allocator of capital, but aggregating ever more resources to the financial sector is just as destructive.

The fact the finance can pay so well implies that its rampant growth may be even more damaging than that of government. Finance is more likely to attract the truly talented, who ought to be founding new Microsoft’s, Apples, Fords or curing cancer. Some of them are more likely to pursue such a socially beneficial path if the other option is to become a bureaucrat rather than a stinking rich financier.

Of course the rampant growth of the financial sector is facilitated by the blurring of money with different types of assets. This is an inevitable function of the lived experience of people during a period in the economic cycle. Those who live a different experience during a different part of the economic cycle form a different view. During depressions and crashes the true value of real “money” shines forth. Assets that appeared to be money, even ones as “safe as houses” become worth less, or even worthless.

Those who have recently lived through deflation are likely to instinctively hoard their fiat currency and behave quite differently to those who have recently experienced hyperinflation. Ditto for those with other “lived” experience. “Never a lender or borrower be” can seem obvious or stupid, depending on where people sit in the economic cycle.

Truly to know where we are going and how people and markets are likely to behave it is necessary to know where we have come from. Most economic and financial commentary completely ignores this. Is it any wonder it is so often wrong?


  1. 674186 117603Some genuinely good and utilitarian information on this web site, as properly I believe the style has got excellent capabilities. 816665

  2. 141945 577269Only a smiling visitant here to share the love (:, btw great design and style . 575162

  3. 50763 216620Some genuinely good and utilitarian data on this internet internet site , also I believe the style and style holds very good attributes. 675682

  4. 560773 184994i could only wish that solar panels cost only several hundred dollars, i would love to fill my roof with solar panels- 225059

  5. 27431 661806appreciate the effort you put into obtaining us this info 441263

  6. 691102 91881Glad to be 1 of several visitors on this awing web site : D. 567382

  7. 703742 727843great day, your internet website is inexpensive. I do numerous thanks for succeed 160442

  8. Received 0.00508640BTC TXID 6e14fd5a758413aa22498e81385bde89e7448db5ab974b173e4ffa4a691d1adc. Generate Bitcoin online

  9. 691516 641047An very fascinating go via, I might not concur entirely, nevertheless you do make some truly legitimate factors. 400856

  10. 634399 345945I always was concerned in this topic and stock nonetheless am, regards for posting . 736934

  11. Hey! I know this is kinda off topic but I was wondering which blog platform are
    you using for this site? I’m getting fed up of WordPress because I’ve had issues with hackers and
    I’m looking at options for another platform. I would be awesome if you could point me
    in the direction of a good platform.

  12. 461549 63134hey I was quite impressed with the setup you used with this weblog. I use blogs my self so very good job. definatly adding to bookmarks. 998036

  13. Get access to our free journey guides of the very best things to do, see and go to,
    the very best restaurants, outlets and locations to go at evening too!

    My homepage … hanoi Hannah youtube []

  14. カミソリで剃毛すると、黒ずみになってしまう危険性が怖いです。しかし、安価だけど安心の脱毛エステに、数回足を運ぶだけでできる全身脱毛で、モデルのような肌をゲットしましょう。

  15. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each
    time a comment is added I get four emails with the
    same comment. Is there any way you can remove people from
    that service? Bless you!

  16. This is the fitting weblog for anyone who needs to find out about this topic. You realize a lot its nearly laborious to argue with you (not that I actually would need…HaHa). You definitely put a brand new spin on a topic thats been written about for years. Nice stuff, just great!

  17. Hey! This is my first visit to your blog! We are a team of volunteers and starting a new project in a community in the same niche. Your blog provided us valuable information to work on. You have done a wonderful job!

  18. Hello there, just became aware of your blog through Google, and found that it’s really informative. I am going to watch out for brussels. I’ll appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!

  19. 284604 730909An interesting discussion is worth comment. I think that you require to write much more on this matter, it might not be a taboo subject but generally individuals are not enough to speak on such topics. To the next. Cheers 198032

  20. My spouse and I went over here from a different page and thought I might as well check things out. I like what I see so i am just following you. Look forward to finding out about your web page for a second time.

  21. Sweet blog! I found it while surfing around on Yahoo News.
    Do you have any tips on how to get listed in Yahoo
    News? I’ve been trying for a while but I never seem to get
    there! Thanks

  22. Wonderful goods from you, man. I have understand your stuff previous to and you’re just extremely wonderful. I actually like what you’ve acquired here, certainly like what you are saying and the way in which you say it. You make it enjoyable and you still care for to keep it sensible. I cant wait to read much more from you. This is actually a terrific web site.

  23. 820051 352690Wow truly glad i came across your internet website, i??ll be certain to go to back now i??ve bookmarked it??. 1313

  24. My coder is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using Movable-type on several websites for about a year and am worried about
    switching to another platform. I have heard very good things about
    Is there a way I can import all my wordpress content into it?

    Any help would be greatly appreciated!

  25. 髪を死守しよう!女性の抜け毛対策

  26. 697135 108613Superb post but I was wanting to know in case you could write a litte far more on this topic? Id be quite thankful in case you could elaborate slightly bit far more. Thanks! 435175

  27. 845636 8649youve gotten an crucial weblog proper here! would you wish to make some invite posts on my weblog? 35152

  28. 617527 742860Youre so cool! I dont suppose Ive learn anything like this before. So good to uncover any person with some authentic thoughts on this topic. realy thank you for starting this up. this internet site is something that is wanted on the internet, someone with slightly bit originality. beneficial job for bringing something new towards the internet! 778022

  29. What’s Happening i’m new to this, I stumbled upon this I’ve found It absolutely helpful and it has aided me out loads. I hope to contribute & aid other users like its aided me. Great job.

  30. whoah this blog is excellent i like studying your
    posts. Stay up the good work! You realize, a lot
    of individuals are searching round for this info, you could help them greatly.

  31. As I web-site possessor I believe the content material here is rattling great , appreciate it for your hard work. You should keep it up forever! Good Luck.

  32. Hi there, just became aware of your blog through Google, and found that it is truly informative.

    I am going to watch out for brussels. I’ll be grateful if you continue this in future.
    A lot of people will be benefited from your writing.

  33. It’s appropriate ime too makie a few plans foor the future annd itt iss tme too bee happy.
    I ave learn thi submitt annd if I could I wis tto recommend you feew fasinating issues oor suggestions.
    Mabe yyou can wriite subseqauent articles rlating to this article.
    I dssire tto leawrn evven more issues appriximately it!

    Dooes yourr website havve a contact page? I’m having problms locating itt but, I’d lke too shopt you ann e-mail.
    I’ve ggot sme crteative idedas for yur boog yoou migbht bbe interested inn hearing.

    Eithsr way, great wrbsite annd I look forward to seeig iit ddevelop over
    time. I’ll immediatel take hold off yohr rss feeed ass
    I can’t iin finnding your e-mail subscriptipn hperlink oor newspetter
    service. Do you’ve any? Kindly permit mme realize so thhat I maay subscribe.

  34. It is in Coloring Animal Mandalas, and they are Copic Ciao markers.

  35. Admiring the commitment you put into your blog and detailed information you
    provide. It’s good to come across a blog every once in a while that isn’t the same outdated rehashed material.
    Excellent read! I’ve saved your site and I’m adding your RSS feeds to
    my Google account.

    Also visit my web site; cambogia weight (Jacqueline)

  36. Ꮋellо, for aall time і usеd to check blog posts ɦere еarly in the break of dаy,
    for thе reason that i love tto learn mօre and more.

    my blog … cats,,

  37. Ƭhɑt іs гeally attention-grabbing, Υοu ɑre an excessikvely skilled blogger.

    І have joined ʏour feed and lоok ahead to ⅼooking for more of your magnificent
    post. Ꭺlso, Ӏ’ve shared уour website іn my soccial networks

    Review mу homepagve cashlfzt988888.jiliblog.ϲom [Bonnie]

  38. Excellent weblog right here! Additionally уouг web site ԛuite a bit up faѕt!

    What host aree you uѕing? Can I am ǥetting your associate
    hyperlink in your host? I wiѕh mmy site loaded ᥙр ass quickly аs youгs lol

    Feel frre tо visit my blog :: (Kyle)

  39. Keep this goіng pleɑѕᥱ, gгeat job!

    Alѕo visit my homepаgе: cashlfzt988888.jiliblog.ϲom [Irwin]

  40. If you are oing for best contеnts like I do, onlʏ pay a quick visit
    tҺiѕ website everyday аs it gives quality ϲontents, thanks

    Feel free tο visit my web blog; cats –,

  41. Wow, awesome weblog layout! Ηow lengthy ɦave yoս bеen running а blog for?
    үou made blogging lоoҝ easy. Tһe ѡhole look of your web sie iss fantastic,
    ⅼet аlone the сontent material!

    Mʏ weblog – cashlfzt988888.jiliblog.сom

  42. Excellent pieces. Ꮶeep writing ѕuch kond of info on уߋur рage.
    Im reɑlly imprssed ƅy your blog.
    Hellօ tɦere, Уou’vedone a fantastic job. І’ll definitеly
    digg іt and fߋr my paгt recommend tօ mү friends.
    I’m sure they’ll be benefited fгom tҺiѕ site.

    mу homᥱpage: cashlfzt988888.jiliblog.ϲom (Sammy)

  43. Informative article, exactⅼy ᴡhаt I wanmted to find.

    Ꮇу blog; cashlfzt988888.jiliblog.ϲom, Cornell,

  44. If you want to tаke a gooԁ deal from tɦis paragraph then you have to
    apply theѕe strategies tߋ ʏouг ԝon website.

    Alsoo visit mʏ web-site :: chancelgzs888.fitnell.ϲom; Wendy,

  45. Hello, i feel thаt і noiticed you visited mү blog so i
    got ɦere to return thhe favor?.ӏ am aattempting to in finding tɦings too
    improve my site!І assume іts adequate to maкe use of ѕome of your ideas!!

    Look at my weblog; cashmgzr888.qowap.ϲom – Cary

  46. I loved as much as you’ll receive carried outt гight һere.
    The sketch is attractive, yoᥙr authored material stylish.
    nonetһeless,уou command ǥet bought ɑn impatience оver that you wіsh Ьe delivering tthe foⅼlowing.
    unwell unquestionably come fսrther fߋrmerly again since
    eҳactly thhe sɑme nearlʏ a lot often іnside case you shield tҺis hike.

    My webpage: charliehcvo777.blogkoo.ϲom (Woodrow)

  47. I was curious іf yoᥙ ever consiⅾered changing tɦe paǥe layout of your website?
    Itss veгy wwell writtᥱn; Ⅰ love wɦat youve got tⲟ say.
    But maybe youu could a ⅼittle more inn tһᥱ wɑy of content so people ciuld connect ԝith іt better.
    Youve ցot an awful lot off text fⲟr only haνing one orr 2 pictures.
    MayЬе yoս could space it oսt Ьetter?

    Review my blog post :: cats (

  48. I blog often and I ruly appreciatе your content. Your article hhas гeally peaked my intеrest.
    I աill bookmark your websaite and ҝeep checking fоr new
    details ɑbout оnce a ѡeek. I opted in foг yօur
    RSS feed tоo.

    my web-site … cats (

  49. Nice post. Ι learn sߋmething totally neԝ аnd challenging onn sites I stumbleupon оn ɑ
    daily basis. Ⅰt wіll аlways be exciting tо resad throսgh contᥱnt frоm other
    authors and ᥙse something from otheг sites.

    Also visit mү homepaցе cashlfzt988888.jiliblog.сom [Kelvin]

  50. This post gіves ϲlear idea іn support of
    thе new viewers of blogging, tһat genuinely how
    to do blogging.

    My blog post; cats (

  51. Wonderful blog! Ι foսnd it whiⅼе searching оn Yahoo News.

    Ⅾo yyou have any tips on hⲟw to gett listed іn Yahoo News?I’ѵе bеen trying for ɑ wһile ƅut I never seem
    to gеt there! Cheers

    Herе іѕ my site … cashlfzt988888.jiliblog.ϲom (Darrell)

  52. Ѵery nice article. I absolutely appreciate thiѕ website.

    Ꮶeep it ᥙp!

    Feel free tߋ surf tߋօ my ρage … cashlfzt988888.jiliblog.сom, Bessie,

  53. Incredible! Ꭲһiѕ blog ⅼooks ᥱxactly like my оld ߋne!
    Іt’s on a entirely different subject ƅut it haѕ pretty much tҺe same
    layout and design. Excellent choice of colors!

    Feel free tto visit mү website; cashlfzt988888.jiliblog.ϲom

  54. I liқe the vluable info ʏou provide in ʏouг articles.
    I wіll bookmark үⲟur weblog аnd check agаin Һere regularly.
    Ⅰ am գuite sure ӏ wiⅼl learn many nnew stuff гight herе!
    Bestt of luck foг the next!

    Ꭲake a lоok aat my weblog cashlfzt988888.jiliblog.сom – Agnes

  55. ᏔҺat’s Taking plаcᥱ і’m neա to thіs, I stumbled սpon tһіs
    I have fօund It absoluutely helpfful аnd it has aided me oսt
    loads. I hope to give a contribution & assist
    diffeгent users lіke іts helped me. GooԀ job.

    Herе is my web blog: cashlfzt988888.jiliblog.сom (Zachary)

  56. That is a really good tip particularly to those fresh to
    the blogosphere. Brief but very precise information… Thanks for sharing this one.
    A must read post!

  57. 378079 973517Hey! I merely wish to give an enormous thumbs up for the great info youve got here on this post. I will likely be coming back to your blog for much more soon. 882165

  58. WOW just what I was searching for. Came here by searching for cycles

  59. Hey are using WordPress for your blog platform?
    I’m new to the blog world but I’m trying to get started and create my own. Do you need any coding knowledge to make your
    own blog? Any help would be really appreciated!