Under the spell of the financial markets
Bankrupt financial system determines our daily life
Financial markets hold our daily lives in a grip: 19 million households invest, our pension system has to achieve stock market returns, the housing market is completely disrupted and a quarter of young people own crypto. The financial system that is at the heart of our society is not functioning. “It's a bankrupt system,” says Professor of Financial Markets Arnoud Boot of the UvA . Although financial markets are relatively anonymous, we are confronted with them incessantly and increasingly determine our daily functioning. Banks, investment companies and influencers are constantly bombarding consumers with advertisements, appeal to our greed, and offer us tools to invest easily. In our immediate vicinity, we also have to deal with investing in stocks, trading crypto or buying real estate. Whoever doesn't participate is a sucker and misses the boat. As a result, a dichotomy within society, a world of winners and losers.
A small illustration of what the macroeconomy does to our lives? European Central Bank keeps interest rates low to protect the euro. And that low interest rate simplifies borrowing. So we put ourselves in debt en masse, and take the big risks for granted.
