I think and hope that we are currently witnessing a well needed paradigm shift.
Lets see what I mean.
At least the last two major financial crises have been caused by the very “industry” that is supposed to be providing financial services. Over the past 20 years at least it would appear that it seemed like industry outside of the financial sector was actually there purely for the benefit of the financial world when surely it should be the other way around? For me it is like considering that those people making beer are there purely for the benefit of the bottle producers.
However, I feel that our governments are not going far enough in controlling this beast. It is now lying injured and now would be the easiest way to tame it. Governments now have regained some power which was sorely missing over the past decade where they were clearly powerless. This means finally they can start to do their job again which means working for the people they were elected by rather than satisfying the needs of the renowned 5%. They have the chance now to make “globalisation” a positive word with more benefits for the normal person than what we currently see – cheap electronics from China, Shiraz and other wines and kiwis (but I think this will be the topic of a future blog).
Few might argue that it was the financial industry who also helped fuel the boom time and so should not just be held accountable for their mistakes but also praised for their successes. But lets look briefly at these “boom times” and who benefited. As a normal tech worker the only way in which I saw a benefit was that things were not as shit as during a crash. There were of course some lucky tech workers, mostly in California, who managed to get stock options and cash them BEFORE the crash. But on the whole the effects of the booms I saw were very limited.
The ride ahead will be rough, change is never easy but the goal at the end will hopefully make it all worthwhile.
So lets hope that in this new world ,financial institutions become the means and not the goal.