Have we reached “peak Wall Street,” and will a crisis follow?

Have we reached “peak Wall Street” — and will a crisis follow? Global financialization has peaked, and focusing more on markets than the real economy is likely to bring diminishing returns — and, potentially, a future crisis due to excessive corporate debt, argues Rana Foroohar in the Financial Times (watch, runtime: 2:00). Financialization — or a preference for all things finance at the expense of the real economy — has been a driving force in the global economy for decades. But Foroohar cites the growth of the corporate bond market, which has doubled in value to USD 13 tn since 2008, and massive increase in share buybacks as examples of its risks. With total financial assets now triple the size of the real economy it’s time for a correction, she predicts.