In spite of frequent boasting by various economists that Information Technology is replacing manufacturing in the U.S., the numbers seem to tell a different story. For instance, I saw this interesting information on the NBC Nightly News a few days ago:
- In 1995—Assets of the 6 largest banks equaled 17% of GDP.
- In 2010—Assets of the 6 largest banks equaled 63% of GDP.
With more and more high-tech and I-tech being created and produced overseas, it appears that “banking” has taken over as the U.S.’s no. 1 industry—and we all know how that ‘s working out.
It also appears that the impending banking “reform” bill now in Congress will do little to help the situation. All the responsibility for regulating the banking system is being left with the Fed, without specifying limits or guidelines. Wasn’t it the Fed that allowed the last banking disaster to develop?
Ah, for the good old days when America actually made things of value, and a bank’s primary job was to loan money to the companies that made those things.