Interfluidity: If only We Had a Financial System...

Steve Randy Waldman of the Interfluidity blog has posted a great piece of common sense, titled "If only we had a financial system...":

The elephant that is not in the room is a financial system. By a financial system, I don't mean the tottering cartel of banks and insurers loudly sucking newly printed cash into "collateral postings" and "deleveragings" and other meaningless nonactivities. That is no financial system at all. It is an ecology of intestines and tapeworms, tubes through which dollars flow and are skimmed en route to destinations about which the tripe-creatures have little interest or concern.

The post is a polemic for a financial system that doesn't think it can create wealth on its own, independently of the actual economy of manufacturing and trade. Read the whole thing. It's a great post.