Quoting the Crisis09/11/2009
“ The objective in the design and marketing of innovative products is not market efficiency, but profitability for the banks. And market efficiency is the bane of profitability. The last thing a bank wants is a competitive, efficient market, because then it would not be able to extract economic rents. So the incentives are to create innovative products that reduce market efficiency, not enhance it. „
Rick Bookstaber: Does Financial Innovation promote Economic Growth?
Quote posted at 21:28
