this is a bizarre take so orthogonal that it's not even wrong, it's just non-responsive to the issue. you keep pointing to equity markets (and keen is totally wrong about them, i'm read his work and it's a mashup of bad math and misattribution of central bank and regulatory issues to the private sector, esp around things like CRA and the GSE's) but we're talking about a market for a product. you do not get this kind of bubble there (and rarely in private ones absent gov't meddling as has bee the case since 2000.

assets are not "misallocated" to derivatives and derivatives ARE productive. they hedge risk. someone is using them to generate liquidity and their game is zero sum so it nets out. they do not consume capital on an aggregate basis.

you seem to be getting your takes here from people who have no grasp of capital markets and then trying to presume that capital markets are somehow interchangeable for "a market for goods and services" which does not make any sense.

seems like this is just spiraling into fully irrelevant takes and appeals to "if it's not perfect then planning can make it better" fallacies.

will leave you to it.