Financial markets and innovation in the 21st century

Financial markets should allocate capital to its most profitable uses. However, derivatives trade that has spiraled in recent decades does not create value, but only redistributes capital among winners and losers. Both markets and democracies require different opinions to work well.The quality of discourse deteriorates, if a single opinion dominates. Companies in the knowledge economy should use human capital to the max by stimulating discourse. Corporate culture should assess values that benefit both the company and consumers. A bank culture deriding customers has contributed to financial crises and channeled huge fortunes to financial institutions that sold their clients toxic products.