Must-Read: Nick Bunker: What Is the Right Size and Purpose of the U.S. Financial System?

…[Noah] Smith notes that they all [pieces of finance]… take savings and turn them into investments…. Size might not be the only relevant question when it comes to the financial sector. The structure and the purpose of the financial system and its constituent parts are important to consider as well. If finance acts like an irrigation system for the broader economy, we need to question not only how big specific pipes are but also where those pipes eventually lead…