This term innovation is currently being hurled about to describe what is fundamentally just the private sector’s latest attempt to fabricate wealth from whole cloth, and to hide that fact from plain view through layers of misdirection, cohorts as alibis, and political cover. The opacity of failures and transparency of successes prevents people from noticing it’s a scam, and thus keeps the money in the game flowing.
Perhaps my sensibilities are offended particularly because I come from a technical background in engineering and computer science, so I have some idea what innovation really looks like, or maybe I’m just perturbed at seeing an otherwise good word perverted as a means for yet another cover-up of what’s really going on.
Regardless, there’s nothing innovative about interest-rate-swaps, credit-default-swaps, or securitization. People have been engaging in speculative gambling in all manners of games for as long as there’s been a means for exchange.
What we have here is nothing more than a series of crude confidence games; institutionalized and run amok.
When I measure these things against the innovations of science, medicine, and engineering it becomes immediately obvious that the only thing innovative about financial "innovation" is the fact that we’ve been successfully duped into believing it’s befitting of the name.
Can we please come up with a more suitable moniker?