The Self-Delusion of Fictitious Capital
Here is the wisdom of Sandy Weil, the founder of CitiBank. He is under the delusion that owes his wealth to his own hard work. Is he nuts? Are banks and insurance companies really the source of wealth? Many economists believe that financial institutions can make the economy more efficient, but the stuff on which our lives depend comes from the drawers of water and the hewers of wood.
Banks can also channel resources into inefficient and unproductive activities, such as much of the private equity boom and subprime mortgages. Any were are the words of wisdom from Mr. Weil.Uchitelle, Louis. “The Richest of the Rich, Proud of a New Gilded Age.” New York Times (15 July).
Mr. Weill said. “We didn’t rely on somebody else to build what we built, and we shouldn’t rely on somebody else to provide all the services our society needs.”