Mistakes were made with subprime mortgages, but the next generation of consumer financial innovations will be better. Too much regulation will crimp creativity and actually hurt consumers.
All too often financial innovations don't provide significant benefits to consumers. New products should be required to serve a real need, and consumers should be educated about the risks.
New ideas can be positive for consumers, but they can't be left solely to Wall Street. The government should identify areas needing improvement and encourage innovation with targeted R&D.