Palmer, Smart Money
Bankers have always been an easy target, but during the financial crisis they were vilified. Even as we claw our way back towards some semblance of economic normalcy, the reputation of bankers remains tarnished. One doesn’t have to be an Elizabeth Warren to wonder whether finance is as constructive an enterprise as it should be.
Andrew Palmer, business affairs editor of The Economist, is an optimist, as the subtitle of his recent book Smart Money indicates: How High-Stakes Financial Innovation Is Reshaping Our World—for the Better.
Palmer argues that what really lay behind the 2007-2008 crisis was not “out-of-control financial wizardry” but “the humble mortgage.” In fact, he asks, “Could it be that the real lesson to be drawn from recent financial history is that the industry suffered from too little innovation, not too much?” (p. 65)