Andy Xie, famously blunt and contrarian economist who was a star at Morgan, speaks the truth.
Unless policymakers understand that the financial industry isn’t necessary for the real economy anymore, and that it should scale down dramatically, the sector will remain a gigantic parasite on top of the real economy.
His basis thesis is that anyone now can have virtually the same access to data as a fund manager, so who needs them? This means the financial industry must then get profits from gaming the system and finding rubes to swindle. Thus, they are a “a gigantic parasite on top of the real economy” and as we all know, parasites kill their host, then move on.
Xie resigned from Morgan after an email of his was leaked in which “he derided Singapore as a money laundering centre for Indonesia, and the ASEAN group of nations as a failure.” Further, he has correctly called multiple bubbles and doesn’t appear to much care about conventional wisdom or upsetting banksters. He’s definitely one of the good guys. Even if he will soon tragically be engulfed in a bizarre and tacky scandal involving hard drugs, money laundering, underage teens, and terrorism – compliments of the dirty tricks squad of some bankster.
Tip. Business Insider.