A while back, I asked about concrete examples of financial innovation that had made a real difference--a positive one!--to our lives. Paul Volcker has come up with the best answer I have yet heard, but it is not quite what you may have thought:
Volcker .. mocked the argument that "financial innovation," a code word for risky securities, brought any great benefits to society. For most people, he said, the advent of the ATM machine was more crucial than any asset-backed bond.
I feel much better with him having some say in this administration's financial policies. I would love to be a fly on the wall when he and Larry Summers get to hash it out in front of the President.