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Kasz216 on 29 October 2012
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richardhutnik said:
Kasz216 said:

First off... the surgery makes more then the gutting, so again, i don't see the problem there, since it's in the best interests to save the company if possible, and the end worst result is that it dies anyway.

Secondly, as for your article... seems like a bit of a correlation, Causation arguement there.

Is it a problem from the banking sector growing too much?   Or is the banking sector growing as a percentage because everything else isn't growing as much?

Credit imporving without the rest of the economy improving with it would be a sign of malinvestment by the people getting the loans would it not? 

Though really even then I'd look at the number 1 country on their list.  It's canada.  Canada's economy has been doing... pretty fine.

The big "Gotcha" things that make this research work are essentially the fact that we had the GFC, and countries with banks have been hit hard, because well, that tends to happen when you have a lot of banks, during a banking crisis.  Countries like Spain and Ireland.

Unless you're out of the loop or found other ways around it.

The thing about the BIS is, it's essentially the Central Bank for Central Banks.  For a long time the EU pretty much ran the place and put in relativly lax holding requirements based on what everyone else wanted... (US/UN.)

Then the financial crisis hit... and now the BIS is advocating bank discretion, because the central bank's weren't properly set up... and people are sick of paying out countries.

It's just another shot at Spain/Greece/Ireland etc.

There is always problems when you try to use any measure to see where things stand.  What happens is people game the measure so it makes the measure not work well.  I believe you see cases of people mucking with intrade site, buying shares in candidate to make it look like a candidate is gaining momentum.  So, it is hard to say that the financial sector growing as part of the economy is the problem, or a symptom.  I would say that it probably is more of a symptom of the problem, in that the other sectors have run out of gas.  But, it is possible that it ends up being part of a feedback loop in the economy that ends up distorting things and make it worse.  Like, the financial sector has a great run.  The sector then sucks into it talent that could be working on science.  Breakthroughs in science are not found that might of been.  And then this causes a spiral to hit.  There are reasons why America has been dropping in math and sciences, compared to other parts of the world.

Huh?

First off... if anything... that would mean there would be an INCREASE in math... since modern banking needs math.

Secondly, America is falling behind other parts of the world in math and science... when it comes to primary and secondary schools.

America is still by far the world leader in both Math and Science on a collegiate and professional level.

With rivals only starting to form in India and China due to their immense population advantage.