Abstract

Our understanding of organizations and social structure in the 20th century was strongly shaped by the large American corporation. Over the past genera¬tion, however, the increasing size and reach of financial markets has dissolved many of the core features of the corporate society in the US. This article traces several pathways through which this happened. The post-industrial shift shrunk the major manufacturers to their essential core. Household savings moved from banks to financial markets, increasing the power of mutual funds and other institutional investors, which led to further restructuring of industry. The rise of securitization further shifted capital from banks to markets, and more and more things became tradeable on financial markets, from home mortgages to student loans to life insurance payoffs. As a result, households found themselves increasingly tied to the movements of financial markets for their well-being, with expansive consequences for society. The financial cri¬sis that began in 2007 punctuated this transition from corporate-centered to market-centered society.