There can be little doubt that these evolving changes in the financial landscape are providing net benefits for the large majority of the American people. The rising share of financial services in the nation’s national income in recent years is a measure of the contribution of the newer financial innovations to America’s accelerated economic growth.
Derivatives and private equities have been in the forefront of the recent financial expansion, fostering the financing of a wider range of activities more efficiently and with improved management and control of the associated risks. Fear of change Nonetheless, some find these developments worrisome or even deeply troubling.