Monday, April 27, 2009

Has Wall Street Ruined US?

Is there a way out of the Wall Street-Geithner-Obama nexus? I'm afraid we're cooked. Finances replaced Manufacturing as the largest part of GDP (21% vs. 12%), our best and brightest minds make more money flipping papers on Wall Street than they do making planes in Seattle or cars in Detroit and the downward spiral continues--you cannot maintain a world class empire on computer clicks and paper flipping. Once you have finances dominating the economy, the country becomes slack with the easy ways of easy money. In this we're following the path of other empires that went down the tubes with finances--Spain, the Dutch and the Brits. They all survived the fall as second-tier powers. That's probably in the cards for us. Geithner may know people in powerful places but he can never bring back what made this country supreme: manufacturing

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