“Understandably the balance of mainstream opinion then shifted, became much more hostile to financial innovation and more personalized with populist attacks on greedy bankers.” Engelen et al, Economy and Society
Financial innovation has been questioned by the economists and analysts. Even those, who first were advocating it, have later decided, that it was not a good phenomenon for neither the economy, nor the society. (Engelen et al, 2010). According to Ben Bernanke, the healthy financial sector is beneficial for the economy. Adair Turner argues, that innovation could be unequally useful. How can a good thing suddenly turn out to be (or become) a bad thing?
According to Miller (1986), the financial innovation creates economic growth in excess of what would be without innovation. Ben Bernanke argues that financial innovation makes risk management easier (Bernanke, 2007). Engelen el at (2010) reaches the conclusion that the financial innovation was represented as a heroic thing, which, by rationally analyzing, appears not to be functioning and cannot match the world deviances.
According to Stephen Cecchetti (2008), the financial innovation helps the world achieve the levels, reach the actions, that would be unimaginable without it. He argues that the basic of the innovation is useful, but the concept could not catch up with the environment and sees the proper financial regulations to be one useful thing to do.