The playing field is not level

The playing field is not level as between Main Street and Wall Street. 

The simplest engine of financialization of an economy is merely to insure risky financial investment against failure while allowing for failure in risky real investments. It necessarily will result in over-investment in the financial sector relative to the real sector. 

The equalization of risk across sectors should determine the haircut financial transactions should have to endure to offset the benefit of the social insurance against failure the regulators provide financial risk relative to real risk for the avowed purpose of smoothing the functioning of the financial markets. Otherwise the economy will ineluctably tend toward financialization and away from innovation in the real economy. 

The damage is even worse when the risky financial investments the regulators guarantee are coupled to other investments designed to destroy enterprises. Making a living by betting on the demise or destruction of a business is almost never good for an economy or society.