I am pretty sure when Blythe Masters and her team came up with CDS and CDOs they thought they have come up with an innovative technique to transfer risk and a s

I am pretty sure when Blythe Masters and her team came up with CDS and CDOs they thought they have come up with an innovative technique to transfer risk and a sophisticated financial instrument. I am sure they also felt there was no need for rules, regulations etc. And I am talking people who were working in finance putting their faith in math. They missed the fact that money isn't a math problem rather a people problem. Risk couldn't be written away because of a derivative. It ultimately led to the biggest recession since 1930s. And with blockchain/crypto we have people who have lesser grounding/experience with finance putting even larger faith in math. They obviously haven't learned the lesson and trying to recreate history.