pg, you are applying technology industry lessons to finance here. The phrase "financial innovation" has a long history of being very destructive to people's wel

pg, you are applying technology industry lessons to finance here. The phrase "financial innovation" has a long history of being very destructive to people's well-being. At the root of it, financial innovations turn out to be sophisticated ways of applying leverage (i.e debt). The Federal Reserve also was massively complicit in the emergence of debt, so it is not a free market phenomenon. The Fed, in an attempt to fight the last bubble burst, kept interest rates low, and armed the speculators (hedge funds) with easy credit. Basic ratios like debt to GDP have exhibited a strong long term tendency towards mean reversion. If that history proves right, we are in for one heck of a ride.