Gross Domestic Product can be a good tool to help central bankers, corporate leaders and investors. But it should be kept in its proper place.
The little question for asset managers is why they earn so much. Buyside pay could soon overtake that of the investment bankers, the traditional “masters of the universe.” But the bigger question is what the industry should do with the $150 trillion it manages.
After a dozen job changes over 35 years, it is too late for me to become a loyal employee. But I know the model of the faithful worker. The dental assistant who used to tend to my teeth worked at the same small practice for about 35 years before retiring, with deep regret, two years ago. She stopped by regularly afterwards, because she wanted to stay in touch with the community that had defined so much of her life.
Economic systems that work well do not have many heroes. The elevated status of the world’s central bankers – seen in the close attention paid to their annual get-together last weekend in Jackson Hole, Wyoming – is a sign that the financial system works badly.