I had another comment I was going to make. You won’t be able to resolve it for me but I’ll raise it anyway. It strikes me that when one looks at the banking system, never before in our lifetime has the industry been under so much competitive pressure with declining market share in many areas and a feeling of intense strain, yet at the same time, the industry never has been so profitable with so much apparent strength. How do I reconcile those two observations?...The problem was the shoelace industry, the shoelace channel being so out of balance the Finance industry had to create reverse flows for equalization.
I not being that ridiculous, the shoelace channel should have been a clue. Finance was doing its job, adjust deposit flows to equalize real goods flow imbalances. The profits come from providing this service. The competition comes from the channel resistance of real goods.
Volker suffers from entanglement, he is entangled with finance and the economy to him is reflected through that lens.
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