Welcome to the era of financial candyfloss

The value of real assets in the US is shrinking as financialisation soars

Source: Financial Times

DW NOTE

The US economy now generates $4.90 in financial assets for every dollar of GDP — double the ratio from 1990. That expansion isn't wealth creation, it's leverage repackaged as prosperity. The real asset base is static or shrinking; what's growing is the claim structure layered on top of it. When the Fed holds rates at 4.57% while deficits run at $1.4 trillion through nine months, it's not restraining anything — it's financing the candy machine.

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