# Prof. Thomas Philippon on the financial industry's share of GDP

1 May 15, 2012 Bloomberg Businessweek ![](/sites/default/files/styles/246w/public/assets/images/con_030601.jpg?itok=GeJte3i1)>

Excerpt from [Bloomberg Businessweek](http://www.businessweek.com/articles/2012-05-15/how-did-the-original-j-dot-p-dot-morgan-do-it) -- "'The finance industry of 1900 was just as able as the finance industry of 2010 to produce loans, bonds, and stocks, and it was certainly doing it more cheaply,' says [Thomas Phillippon](http://www.stern.nyu.edu/faculty/bio/thomas-philippon). ... the 'finance industry’s share of \[gross domestic product\] is about 2 percentage points higher than it needs to be, and this would represent an annual misallocation of resources of about $280 billion for the U.S. alone.'"

[Read more](http://www.businessweek.com/articles/2012-05-15/how-did-the-original-j-dot-p-dot-morgan-do-it)