These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it. This unbundling improves the ability of the market to engender a set of product and asset prices far more calibrated to the value preferences of consumers than was possible before derivative markets were developed.
We must overhaul the labor market so as to encourage greater labor force participation, while simultaneously realizing a social environment in which people feel the desire to start families and raise children without needing to worry unduly.