The Stock Market Is Shrinking. That’s a Problem for Everyone.

www.nytimes.com

Jeff Sommer:

The American stock market has been shrinking. It’s been happening in slow motion — so slow you may not even have noticed. But by now the change is unmistakable: The market is half the size of its mid-1990s peak, and 25 percent smaller than it was in 1976.

It strikes me that this is a bigger deal that it may seem at first. Because it has been happening so slowly, we're barely perceiving it. And while you'd think this trend has to reverse at some point, given the way the markets (but public and private) are currently constructed, it won't. And, in fact, it will probably just get worse.

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