The Importance of Innovation in Financial Markets

I think innovation financial innovation is an element in virtually every financial crisis in US and world history though I would be careful to say that it is I doubt that it is the crisis. As Joseph Schumpeter said the gale of creative destruction is is always present always blowing and it's a matter of how to deal with that relentless change in markets and institutions and products and processes that is the challenge for everyone. Bob Compare was lauding the entrepreneur in his book on capitalism democracy and socialism but the important idea there is that because the financial markets all markets really but financial markets particularly are so dynamic all decision makers need to be on their toes looking out for where trouble will break out.