Financial Product Innovation: The Spectre of Disasters Past or Trends with Benefits?

New financial products, just as opaque and complex as those that brought the world to the brink of economic meltdown, are back on the market. There's no stopping them. And while it may seem ironic, financial innovation is vital as a means of managing risk, insist the experts. The latest batch of financial instruments also serves to lower costs for investors. But what shape should financial product innovation take? Should it be market-led innovation or based on centrally planned models? The process of bringing these products to market also demands scrutiny. However, rather than running scared, it seems the time has come to explore innovative financial product trends with benefits.