The following article provides some insight into the dual economies that we are living in. I do consider the economic situation in the United States to be a “dual economy”, a term which is continually used in development economics. Historically and traditionally, dual economies have always featured full-blown informal sectors as well as large black market economies which are hard to compile accurate data on. Moreover, the term is predominantly used to describe the types of labor which are being conducted within the overall economy.
With a “dual financial economy” (as described in this article), however, the focus is placed on a true division in finance between Wall Street and its investors and the economy in which most of you and I live in. Complicated by the almost intangible sectors of futures & derivatives markets which are highly instrumental in the smoke & mirrors aspects of the Wall Street economy, this is an economic condition that requires much more supervision and enforcement.
I sincerely hope that legislators and the executive branch will make a serious and sustained effort to put effective controls in place. One thing I am sure of is that more and more of the public are becoming aware of the fact that Wall Street is not playing the positive role it should in our daily lives. The last thing actors on Wall Street and on Capitol Hill want Americans to realize is that they may be living in a Banana Republic with the blessing of those we have sent to the Senate and House of Representatives to represent us.