US real assets shrink as financial candyfloss era dawns

The value of real assets in the US is shrinking as financialisation soars, according to the Financial Times, which has dubbed the phenomenon the “era of financial candyfloss”. The assessment, published in the FT, signals a growing disconnect between tangible wealth and the ballooning paper economy. While no UK-specific data is cited, the trend raises questions about whether Britain is following a similar path as its own financial markets expand. The FT’s analysis warns of a hollowing out of productive capital, though the report does not detail the scale of the decline or the sectors most affected. The phrase “financial candyfloss” evokes an economy that looks substantial but dissolves on closer inspection.