Financialization is a term used to describe the developed over the decades few decades in which financial leverage tended to override capital equity, with financial markets coming to dominate over traditional industrial economic activity. Financialization describes an economic system or process that attempts to convert all value that is exchanged into a financial instrument. The intent of financialization is to be able to reduce any work product or service to an exchangeable financial instrument and thus make it easier for people to trade these financial instruments. Financialization can be thought of as the virtualization of real economies. Through information technology, mathematical modeling and lots of financial analysis any real economic asset can be virtualized into a financial instrument, that can then be exchanged within financial markets. With the rise of information technology, the financial industry has been in a rapid state of development performing this activity of virtualizing assets and creating new derivative instruments.
