The actually cost of sustaining the current financial system.

Chris Menon interview with Prof Steve Keen

Q. Much of the reforms that you recommend are predicated on reform of the banking sector, cutting the banking sector down to size. How realistic is that given the nexus between the political class and the banks….?

Professor Steve Keen

 A. “We have to break that political nexus, it’s false, because the reality is, finance is a cost of doing business; it’s not a profit centre. Finance of course has to make a profit in its own right to be viable; you need a financially successful profitable banking sector. But you don’t need one that’s 30 and 40% of the profits of the economy, because at that level it’s actually syphoning off money being generated in the real production, of the industrial sector, the agricultural sector and the mineral sectors. Ultimately the financial sector should be the servant of the rest of the economy not the master. But at the moment it’s the master of not just the economy but of the politicians as well. So to break the nexus, we need a complete political shift…..“

                                       Professor Steve Keen


Professor Steve Keen on why the recovery is doomed

(10 min)

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