overview

Advanced

'Countries suffering from .. “too much finance” .. use their financial resources less efficiently..'

Posted by archive 
<blockquote>'The study found that economies such as Ireland, Japan and the US had already crossed a line when financial sector expansion started to have a smaller impact on growth that eventually turned negative.

Countries suffering from what they call “too much finance”, the researchers argue, use their financial resources less efficiently. They are allocated less and less to productive activities meaning that the overall productivity growth in economies slows.'

- Shawn Donnan, Financial sector in advanced economies is too big, says IMF, May 12, 2015</blockquote>


<blockquote>' “The U.S. experience shone a spotlight on the dangers of financial systems that have grown exponentially and beyond traditional banks,” the authors wrote in a blog post. Once the financial sector penetrates deeply enough, the economists say, it creates instability and puts a damper on growth.

..

Though the authors say there isn’t an exact point at which a country can be diagnosed with “too much finance,” they found a range at which the benefits of financial development start to sour. The U.S. sits well past that point.'

- Owen Davis, US Economy Suffers From ‘Too Much Finance,’ Says New IMF Study, MAy 13, 2015</blockquote>


Context (Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'

<blockquote>'Deutsche Bank is a potential catalyst for the bursting of the global Bubble .. with global central bankers, lost their minds, with massive QE and negative rates..'