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**pokerbonuscod** · 10-21-2009, 09:37 PM

To add to the discussion: I do believe that financial innovations often lead to greater instability in the short term. People get excited about the possibilities and are blind to the flaws of the new structures, models etc. But the same is true about innovations in the non-financial sector as well. Does anybody remember the tech bubble? Does the admitted unpleasantness of market crashes outweigh the good being done by these innovations? No.

Stock market crashes couldn't exist without joint-stock companies. But I'm not willing to give up the latter to get rid of the former. And any system of regulations which succeeded in preventing bubbles and crashes would also stifle these innovations.

10-21-2009, 09:37 PM	#26
pokerbonuscod Join Date Oct 2005 Posts 556 Senior Member	To add to the discussion: I do believe that financial innovations often lead to greater instability in the short term. People get excited about the possibilities and are blind to the flaws of the new structures, models etc. But the same is true about innovations in the non-financial sector as well. Does anybody remember the tech bubble? Does the admitted unpleasantness of market crashes outweigh the good being done by these innovations? No. Stock market crashes couldn't exist without joint-stock companies. But I'm not willing to give up the latter to get rid of the former. And any system of regulations which succeeded in preventing bubbles and crashes would also stifle these innovations.
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