Financial innovation and greed devastate global economy, urgent reform needed.
The financial crisis caused by unregulated financial innovation and greed has severely impacted the global economy. Structured finance instruments in the American housing market played a major role in spreading the crisis worldwide. The finance industry needs significant reform in managing financial institutions, regulating markets (especially credit rating agencies), and coordinating international regulations to create a more stable financial system. Only through meaningful reform and a shift in motivations can a sustainable global economy be achieved.