Now a far more important source of leading to corporate America than before, financial markets can offer cheaper alternatives to banks and other traditional thrift institutions. With the growth in securitized commercial and industrial loans, there are more opportunities for firms to raise funds. But it’s a fragile, delicate arrangement, since more corporate and individual wealth is tied to the markets. What is all adds up to be this: Our economy today is more open, competitive, and reliant on financial markets than it was in years ago. The interaction of all the factors is important to propel the expansion. For example, without cheap plentiful financial capital, many would no t be in a position to invest in new technology.
Current thinking says that if you invest as such possible in technology, the customer has come. Not quite-economists are starting to see things differently. If customer confidence wilts, the benefits of deregulation are tapped out, the market drops, or foreign investors take their funds elsewhere, then the economy could melt. There are a hundred of other factors that could go wrong too-things that technology can’t offset. Keep that in mind next time you hear this expansion called the internet boom.
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