Financial Innovation Is Dangerous But Necessary

Are Wall Street, Lombard Street, and other key financial capitals in the global marketplace nothing more than casinos? Sure, financiers, academics, and economic textbooks all say that the job of financiers is to gather savings and invest the money, and if done well, their efforts spur economic growth. What's more, although most people couldn't really understand the mechanics of financial innovation in recent decades, the net justification was that it enabled finance to do its fundamental job better.

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