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I wonder how much value modern financial innovations actually add to the economy. Certainly CDSs, CMOs and others haven't added any. By the way I'm fine with f

I wonder how much value modern financial innovations actually add to the economy. Certainly CDSs, CMOs and others haven't added any. By the way I'm fine with financial firms that risk their own money. Global banking empires risking other people's money and insured by the American citizen have proven to take more from the economy than they add though. Without the Fed pumping them full of easy money, and with Glass Steagall, they wouldn't even exist. And yes, power corrupts no matter which industry you come from, but at least in engineering, science, medicine, or even sports, etc there is ostensibly some kind of respectable merit required in success. Just look at the richest tech moguls in the world, and it's clear what they contributed. What exactly did the richest financiers like Jeffrey Epstein, Jamie Dimon, or George Soros contribute? It's hard to put a finger on it. If anything it appears they profit off of others demise.

bogomipz 9y ago
>"I wonder how much value modern financial innovations actually add to the economy." Money market funds and mutual funds are innovations which have helped people save for retirement. Venture Capital funds have enabled many tech companies to flourish. The Commercial paper market has made payroll at large corporation much more efficient. Securitization of debt although it can obviously be abused is what allows people to get financing to buy homes and get car loans. These were all innovations. I am no defender of the banking industry but to say that there hasn't been value added by any of these innovation seems pretty silly.
- wallace_f 9y ago
  >I am no defender of the banking industry but to say that there hasn't been value added by any of these innovation seems pretty silly. Come on, you are responding to an argument I never even made. To restate what I said: the value added by securitization is dubious, and likely even negative. I asked what really is the value of modern financial innovation which you addressed. I maintain that it is a fair question to wonder if that value is worth the cost Wall St has on the economy. All three of your posts in this topic are directed at me, and are unnecessarily negative and condescending, while two of them contain glaring factual errors. What is going on here?

bogomipz 9y ago

>"I wonder how much value modern financial innovations actually add to the economy." Money market funds and mutual funds are innovations which have helped people save for retirement. Venture Capital funds have enabled many tech companies to flourish. The Commercial paper market has made payroll at large corporation much more efficient. Securitization of debt although it can obviously be abused is what allows people to get financing to buy homes and get car loans. These were all innovations. I am no defender of the banking industry but to say that there hasn't been value added by any of these innovation seems pretty silly.

wallace_f 9y ago
>I am no defender of the banking industry but to say that there hasn't been value added by any of these innovation seems pretty silly. Come on, you are responding to an argument I never even made. To restate what I said: the value added by securitization is dubious, and likely even negative. I asked what really is the value of modern financial innovation which you addressed. I maintain that it is a fair question to wonder if that value is worth the cost Wall St has on the economy. All three of your posts in this topic are directed at me, and are unnecessarily negative and condescending, while two of them contain glaring factual errors. What is going on here?