Wall Street after 2008 retained global profits without recycling them into productive investment.

Evidence

True, the rest of the world continued to send most of its profits to Wall Street. But the recycling mechanism was broken: only a small fraction of the monies rushing to Wall Street returned in the form of tangible investments into factories, technologies, agriculture. Most of the world’s money rushed to Wall Street to stay in Wall Street. There, it sloshed around doing nothing useful. As it piled up, it bid up share prices, thus giving the Jills and the Jacks of finance yet another opportunity to do stupid things at a mammoth scale. — Yanis Varoufakis, Technofeudalism, 238

Categorization

• XREF: connects to: US trade deficits recycled global profits back into Wall Street investment. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 191