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Read other letters about this article
http://www.salon.com/books/review/2006/03/16/phillips/index.html
from the article (please do read the book):
Phillips' final section, about national debt and the increasingly insubstantial nature of the United States economy, follows the model of the rest of the book, offering a summary of others' research on the subject, followed by historical analysis. What concerns Phillips here is not just the country's staggering national debt -- although that concerns him plenty -- but also the shift from a manufacturing to a financial-services economy, which he calls financialization. Instead of making things, Americans increasingly make money by moving money around. Finance, he writes, "fattened during the early 2000s -- this notwithstanding the 2000-2002 collapse of the stock market bubble -- on a feast of low interest enablement, credit-card varietals, exotic mortgages, derivatives, hedge-funded strategies, and structured debt instruments that would have left 1920s scheme meister Charles Ponzi in awe."
