Step 1: Inexpensive, Simple, Low Risk – ETFs have been the best innovation in the financial industry for decades. The story of success.
By Harald Freiberger
Paul Volcker, 93, was something of a fire chief in the global economy. Whenever there was a fire, we called him. As head of the US Federal Reserve, he helped solve the inflation problem in the 1980s, and after 2009, he cleared up the pieces of the financial crisis. Paul Volcker’s most famous quote comes from this period. “The last real innovation from banks was the ATM,” he said. All the other financial innovations of the last quarter of a century would not have brought any social and economic gain. Above all, he thought of the highly speculative instruments that had led to the financial crisis, CFDs, CDS and ABS, all abbreviated as three letters.