This is the basic problem with the Anglo-American-Dutch banking system. Instead of extending loans to create new factories to employ people, new means of production, bankers look at what can be pledged as collateral on which they can foreclose.

Stock markets were supposed to supply “equity investment” capital. But they have been turned into a vehicle for debt-financed leverage buyouts (LBOs). Raiders borrow money much like landlords borrow to buy a rental property and bleed it. This turns corporate cash flow into interest. Governments permit this to be tax-deductible, so this encouragement of debt financing over equity worsens their fiscal position. It forces them into debt to bondholders. So the process becomes a deteriorating financial spiral.