With the massive PPI mis selling and foreign exchange scandals bringing down consumer confidence in banks and capitalism in general, the London Stock Exchange Chief Executive Xavier Rolet recommends that individual investors should have access to tech start-up IPOs as a solution to place public stakes against capitalism.
According to analysts, the brutality of the “boom-bust” cycles and concentration of wealth “at the top” makes the concept of banking and capitalism in general a big threat to small-income and middle-class earners.
Rolet recommends that a deductibility of interest that would cease above a certain maximum leverage ratio would help the public have a say with capitalist interests. According to him, it is imperative to rediscover a popular capitalism that works for many people rather than just a gilded fraction of society. It is important that it is built upon competitive but ethical practices, innovation, entrepreneurship and the notion of risk-taking and successes.
He references Nassim Nicholas Taleb who wrote the black swan in recommending that an economy of small and medium class enterprises would help balance the fragile situation of the global economy. It also allows for varied employment and capital, making it less susceptible to the cycles of Western economies.
The diversification of economies would help prevent mishaps such as mis sold PPI and foreign exchange scandals, which could pull the global economy out of shape after each case.