Would You Hire This Man Today?

Pete Mahurin is a legend. 

One of the longest-tenured, and for many years the largest, producers at the former Hilliard Lyons, he is renowned not only for his client relationships and his investment acumen, but for the letter he wrote over 50 years ago requesting employment as a broker trainee. It is a classic:

September 1967

I am writing concerning job openings in the Finance field. My name is Pete Mahurin, age 29. I am in excellent health, having not missed a day of work in five years. I neither smoke nor drink. I am a High School science teacher. I also am in the wholesale egg business.

My college years were wilder than most. I worked as a steeplejack (painting water towers) and played poker for a living. However, I quit poker and have not played in six years. 

I will give you some of my assets and liabilities. First the assets: I am quick to learn. I can sell. I expect to work and I like to work. I am dependable. I will be at work on time and not half asleep.

Now my liabilities. I have no rich friends or relatives and can bring your firm no business in that manner. My background is rural and I am not in the Country Club set and have no interest in being in it. I have never owned a share of stock in my life. 

Selling eggs, teaching, painting water towers and playing poker. A non-traditional resume, to say the least. But it might just be one of the very things that made possible Mahurin's extremely successful career in wealth management.

"Pete might be considered 'old school' by today's standards," says Baird Vice Chairman Jim Allen, one of Mahurin's closest friends, "but don't suggest that to his clients or to those who he has mentored over the years."

"Because of who he is and where he has come from, they have all benefited from the wisdom and guidance of an individual who is not just gifted, but tirelessly hardworking and authentic, with values that can provide valuable lessons for generations to come."

As the senior-most generation of financial advisors begins to transition out of our business and (hopefully) hand their practices and their clients off to next-generation successors, I worry that we risk losing one of the things I've always loved about the wealth management business – the diversity of backgrounds advisors have brought to our industry and the multiplicity of paths they followed to get here. 

Part of that has to do with the way retail brokerage evolved over the years into investment management, which evolved into wealth management. It's shifted from sales to advice. From transactions to relationships. From a business to a profession, with different standards and hurdles to entry. 

There's also no question our industry values different types of diversity than in the past – specifically, gender and ethnic diversity – and firms like Baird are working to ensure their associates more closely reflect the diversity of the clients we serve. 

But younger advisors are less likely to have done the things Pete Mahurin did in his youth. We're not likely to have the same eclectic breadth of experience in our advisor ranks a decade from now that we do today. 

If and when that happens, I for one am afraid our industry will have lost something unique and special, even for all we have gained. 

Where Will the Next Generation of Financial Advisors Come From?

This month, as communities across the country begin to look for a safe path back to some semblance of normal life, college students are graduating in what must seem a surreal fashion. With no ceremonies or celebrations to attend in person, some are doubtless thinking hard about the current environment and what it might mean for their plans. 

One thing seems certain: Unless their time in quarantine has radically changed their outlook, many of them won't be going into the wealth management business.

Earlier this year I wrote an article for Investment News about what was then perhaps the biggest crisis facing our industry – an impending wave of financial advisor retirements anticipated in the next decade with nowhere near enough interested young talent in the recruiting pipeline to replace them. The implications of this are serious not just for wealth management firms but for their current and prospective future clients. 

In the months since the article was published, other priorities have obviously shifted to the front burner due to the COVID-19 pandemic and its impact on both the economy and people's financial lives. But the next-gen talent shortage continues to simmer in the background. 

Before shelter-in-place orders turned college seniors' last semester into an extended virtual reality exercise, I sat down with Baird's Next Generation Talent Manager Katie Jackson to talk about what Baird is doing to bridge the looming generation gap in our industry. You can watch that interview in the video below. 

Finding the Next Generation of Advisors from Baird on Vimeo.

Learn more about Baird’s Foundations program at BairdCareers.com.

Image Taken Before the Pandemic: Foundations Associates Anita Volk and Michael Krecek take steps toward their futures as Financial Advisors.

This Time Is Different

It seems like each new market and economic crisis is inevitably compared to the most painful one that immediately preceded it, and the chaos that came with the global spread of COVID-19 has been no exception. Shortly after the first major U.S. sell-off, it was already drawing comparisons to The Global Financial Crisis that began in 2008 and birthed The Great Recession. But, as I note in an article recently published by On Wall Street, there are some important differences between that environment and the one we find ourselves in now. You can read about them in the reprint below:

This Is It

The Most Important Lesson for Future Leaders of Finance

If I could offer one piece of advice to millennial professionals in the finance industry who have never been through a bear market, much less an unfolding societal crisis like that caused by the COVID-19 virus, it would be this: Pay attention. 

Extreme times reveal core values. Crises reveal character. This may be one of the single most important moments you will ever experience in your development as future leaders of our industry. Decades from now you will talk about this with your children and grandchildren, with the employees who will then be reporting to you, with the companies and businesses you will be running. The pandemic of 2020 will be one of the things that formed you as a professional and a person. 

Now is a time for heightened mindfulness. Pay attention to what you are feeling and how you're reacting to situations. At work. At home. In the communities you are a part of. What matters most to you amid the profound unfamiliarity and uncertainty and anxiety we are living with on a daily basis?

Watch the people you admire and respect. How are they behaving? My bet is that those rising to this occasion are radiating an outward-focused commitment to attending to and serving others, while at the same time, they seem centered and grounded. 

This is the secret to leading effectively in a crisis. You need to find the solid ground on which you can stand – stable, centered, strong. But that solid, stable ground has to be the conviction that your purpose, at times like these, isn't to worry about yourself – it is to help others. To help real people in the real world with real problems. 

As I wrote in the middle of the financial crisis of 2008 – 2009, "The best way to make it through a crisis is to stop focusing on your own problems and start helping others with theirs."

Learn that. Experience that. Live that. And you will have the most important thing you need to lead our industry through peak and valley cycles and crises in years to come. 

Lessons Learned From Investing in Volatile Times

Even for those of us who've seen them before, times like these can be incredibly challenging to navigate for investors. 

Right now I worry about people who are trying to do that on top of their day jobs, especially with everything else the Covid-19 pandemic has given them to deal with. 

I recently corresponded with fellow Baird blogger Mike Antonelli about our experiences investing through volatile times. I hope people thinking about their next trade can benefit from what we've learned... or at least avoid the most common mistakes. 

Character and Culture: The Legacy of Paul Purcell

Several years ago, I sat in a midtown Manhattan restaurant telling my lunch guest, former UBS Wealth Management Americas CEO Marten Hoekstra that I would soon be joining Baird, a Milwaukee-based global financial services firm as Vice Chairman. 

"Are you kidding?" Hoekstra said. "That's fabulous! You rarely get the chance to work with a true leader like Paul Purcell."

Purcell, longtime Chairman and former CEO of Baird, passed away at the age of 73. Since then, leaders from across the financial services industry have echoed Hoekstra's comments, offering an outpouring of praise for a fallen colleague and lamenting that our industry has lost one of its best. 

"Paul Purcell was the epitome of the way we think of best in class: hardworking (a non-stop worker), intuitive, of the highest integrity, passionate, boldly humble, committed, loyal, an unparalleled relationship builder," said Kim Fleming, Chairman and CEO of Pittsburgh-based Hefren-Tillotson. 

Jim Allen, former Chairman and CEO of Hilliard Lyons, trusted Purcell enough to sell his business to Baird last year and signed on to continue serving as Vice Chairman of Baird.

"For many years, I have enjoyed the privilege of knowing Paul as the highly regarded leader of a strong competitor," Allen shared. "More recently, I was honored to call him a colleague. He was always genuine, caring and insightful. While he was analytically gifted, he was constantly guided by his keen instincts and intuition." 

"He was a great man and an incredible leader," said D.A. Davidson CEO Jim Kerr. "He was always known for doing the right thing." Kerr's former colleague longtime D.A. Davidson Chairman Bill Johnstone added, "He proved that you could be both enormously successful and do so with integrity, grace, kindness and humility."

For more than a decade, at CEO roundtables and board meetings for the Securities Industry and Financial Markets Association (SIFMA), and during my last two years at Baird, I myself had the privilege of watching Paul Purcell in action. 

I admired his integrity and unflinching honesty, which could sometimes come off as uncomfortable bluntness, like when he told me in an interview for my 2012 book Stewardship: Lessons Learned from the Lost Culture of Wall Street, "There's no question our industry lost its way [during the financial crisis]. It was greed, glorious greed."

I admired the culture he built at Baird, which may be his most enduring legacy. He believed passionately in employee ownership, and not only had the courage to repurchase Baird from its then corporate owner, but the foresight to share that ownership with approximately two-thirds of the firm's 4,600 employees, who are known as associates, akin to partners in a broadly-held partnership. 

He believed to his core in treating everyone with the dignity and respect they deserved. No email – from anyone, on any topic – was too unimportant for him not to answer. If my mobile phone buzzed at 9:30 pm on a Saturday, it was inevitably Paul, responding to something I had sent him. Under his leadership, every year, for the last 17 years of his career, Baird was recognized as one of the top companies to work for in America. 

Culture is the organizational equivalent of character. Culture is driven from the top and reflects the character of a firm's leaders. Character and culture matter. Get them right and anything is possible. Without them, nothing else matters. 

Paul Purcell was a true leader because he got them right. Exquisitely right. That is the example he set for all of us and the legacy he bequeaths to our industry. 

This tribute originally appeared in Barron's on March 9, 2020. 

John Taft is Vice Chairman of Baird. He is a past chairman of the Securities Industry and Financial Markets Association (SIFMA), where he advocated for responsible financial reform.  

Government Policy: The Lever that Moves Financial Markets

"Give me a lever and I will move the earth," the Greek philosopher Archimedes is paraphrased as saying.

Today, when it comes to individual stocks, sectors or markets overall, that lever is public policy. Regulatory policy. Fiscal policy. Tax policy. Monetary policy. 

While the markets themselves are politically agnostic, public policy has a significant impact on business fortunes and individual stock prices and, in turn, on how market sectors move. 

"Companies understand the risks and opportunities from government policy faster than investors," says Dan Clifton, a noted Washington D.C. policy analyst with Strategas, a macroeconomic research firm and Baird company. According to his research, "the number of companies citing the government as their top risk doubled from 26% to 52% since the financial crisis."

Magnify these effects tenfold in an election year, when novel and occasionally extreme policy proposals are floated by Presidential candidates. As Nicholas Bohnsack, co-founder and President of Strategas, writes: "Election years have always had a funny impact on the markets. The impact on investors' emotional volatility is almost blinding. In election years, we all become policy analysts."

For current examples, just look at the way stocks in managed healthcare companies have tracked with polling results for Bernie Sanders or Elizabeth Warren, both of whom have proposed “Medicare for All” plans that could essentially end private health insurance. Or the spike in corporate earnings in 2018 after passage of legislation reducing corporate tax rates. Or the 30% decline in Facebook’s stock price during 2018 Congressional debate over new privacy regulations. Or the impact of President Trump’s tariffs on the share prices of China-exposed companies like Advanced Micro Devices, Chevron, Qualcomm or Wynn Resorts, all of which have been impacted by trade war headlines.

Even outside of traditional election cycles, government policy has become as important a driver of individual stock performance, sector performance and overall market trends as it’s ever been in our lifetimes.

So much so that Clifton created an innovative “lobbying index,” a basket of 50 stocks selected on the basis of their “lobbying intensity.” Lobbying intensity is a quantitative metric that takes into account the amount of money a company spends on advocacy relative to factors on a company’s balance sheet.

Clifton’s premise, simply stated, is that within any given sector, companies that are more active in Washington – those that invest more resources in lobbying and public policy advocacy – tend to outperform their competitors.

Regardless of any one person’s political beliefs, the impact of public policy on business is clear. “Our research has found that an increasing share of company profits are derived from public policy developments,” Clifton says. The lobbying index is the underlying index for Strategas Asset Management’s Policy Opportunities Portfolio. “With the government casting a larger shadow over the economy and the 2020 election quickly approaching, the Policy Opportunities Portfolio is designed to invest in companies that place a priority on lobbying spend.”

More than a decade of data seems to support Clifton’s thesis. Since the Policy Opportunity Portfolio’s inception in 2009, it has outperformed the S&P 500 by an average annualized 2.9% (290 basis points).

Why? What is driving this outperformance?

“The lobbying basket’s continued outperformance stems from the fact that the market cannot properly value the earnings benefit generated by company lobbying,” Clifton says. “Corporate lobbying is not a traditional factor accounted for in most analysts’ models.”

Clifton’s portfolio captures the flip side of the “crony capitalism” decried by politicians and others who favor increased regulation and government intervention. Corporations have been criticized by these and other entities for wielding their resources, directly and through trade associations, to influence government policy, allegedly “rigging” the rules of the policy game to their advantage.

What this crony capitalism critique ignores is that the federal government, growing exponentially as it has over the last 100 years, has become so inextricably entwined with every aspect of our capitalist economy that corporations now ignore what’s going on in Washington, D.C. at their own peril.

Our economic system is no longer (if it has ever has been) a free market economy. It may not (yet) be a managed economy, either. But it is an economy where elevated government policy uncertainty and almost continuous regulatory change are among the most important factors influencing business fortunes.

“Since the bursting of the tech bubble in 2001 and the financial crisis in 2008-2009, regulatory intervention in the private sector has accelerated,” says Clifton. “It used to be that company earnings were generated by research and development and by capital expenditures. Now it’s driven by lobbying.”

Regardless of who wins this year’s Presidential and Congressional elections, that’s likely to continue. And Clifton’s Policy Opportunities Portfolio represents a unique way for investors to proactively hedge against and participate in that trend.

How Do You Eat an Elephant?

Like the punch line to the old joke, "How do you eat an elephant?," the Setting Every Community Up for Retirement Enhancement (SECURE) Act strives to address America's enormous retirement savings crisis "one bite at a time." 

The law, which makes it easier for workers to save for retirement, was signed by President Trump at the end of last year, just as the Center for Retirement Research at Boston College announced that total retirement wealth holdings of middle-income Americans have declined in real terms since 2016 – despite a continuing bull market in U.S. equities and historically low inflation. It's a step toward addressing one of the biggest elephants in the room for U.S. workers. 

The Retirement Funding Gap
According to the National Retirement Risk Index, almost half of today's working-age households are at risk of not being able to maintain their standard of living in retirement. The percentage is even higher if healthcare is considered. 

And 20% of Americans have less than $5,000 in retirement savings

"Most Americans are in serious financial trouble and don't even know it," noted Charley Ellis in my 2015 book A Force for Good, warning of the specter of "large numbers of poverty-stricken elderly people who outlived the retirement funds they once thought ample for a comfortable retirement."

"Too many U.S. workers face the prospect of spending their old age in poverty," reads a recent headline from the Financial Times

One of the core shared expectations society has of our financial system is that it will enable Americans to save enough money to live on as long as they're alive. 

Yet the gap between that basic goal and reality – the "retirement funding gap" – has gone unaddressed for years. And like the federal deficit, the longer the issue has persisted, the bigger it's become. 

How the SECURE Act Can Help
The SECURE Act – the first major piece of retirement legislation in more than a decade – makes it easier for employers to offer retirement plans to their workers. That's critically important because workplace access to a retirement plan is a key driver of retirement savings in a world where defined contribution plans have virtually replaced defined benefit plans (and where one-third of workers don't have access to a workplace plan at all). 

For example, the act offers tax credits of up to $5,000 for three years to small businesses that set up retirement plans. 

It also makes it easier for businesses to join together in so-called "multi-employer plans" and hire "pooled administrators," thereby leveraging economies of scale.

More significantly, the SECURE Act addresses a daunting challenge for retirees – converting their savings into reliable income streams. According to Blackrock's DC Investor Pulse survey, 93% of plan participants are looking for guidance about how to do just that. The SECURE Act requires plan to provide an annual statement about how big workers' retirement "paychecks" will be. It also allows for funds in 401(k)s and other types of retirement plans to be invested in lifetime income products, such as annuities, that can help manage longevity risk.

These and other provisions of the SECURE Act won't in and of themselves solve the retirement funding crisis. 

Any policy solution needs to address how to monetize the trillions of dollars in home equity values that represent, for most savers, their single largest asset. (Reverse mortgages aren't the answer.) 

Ultimately, there can be no policy substitute for individuals taking personal responsibility for saving early and regularly throughout their lives, working longer, planning carefully and intentionally about how to convert their savings into income and living within their means, recognizing they will likely need to live for 20 to 30 years on what they've set aside. Now more than ever, even with helpful legislation on their side, retirement savers and retirees need the advice of financial professionals with their best interests in mind. 

But what is worth celebrating about the SECURE Act is that it represents one of the few examples in recent years of true societal stewardship – a collaborative, research-driven, needs-based, bipartisan effort across the public and private sectors to take a bite or two out of one of the biggest elephants in the room. 

Warriors for Opportunity

Financial capitalism – free markets powered by a robust financial system – is the dominant economic model in the world today. Yet many who have benefited from the system agree it's not working the way it ought to. 

U.S. political discourse seems to be increasingly against capitalism. Democratic candidate Elizabeth Warren – representing one of many voices on the progressive left of American politics – has proposed an Accountable Capitalism Act and unleashed a broadside of policy proposals that would:

During October's democratic presidential debate held in Ohio, Warren charged, "Giant multinational corporations ... have no loyalty to America. They have no loyalty to American workers. They have no loyalty to American consumers. They have no loyalty to American communities. They are only loyal to their own bottom line."

And it isn't just campaign-trail politicians questioning the system. Billionaire Salesforce founder & CEO Marc Benioff recently said in The New York Times that "Capitalism, as we know it, is dead." 

Fewer than 50% of millennials have a positive view of capitalism, and their views have apparently darkened in the past five years. 

Economist Thomas Piketty, who wrote Capital in the 21st Century, a highly influential book on inequality, is advocating for "participatory socialism," stating, "The time has come to exit this phase of making property sacred."

Even a recent cartoon in The New Yorker shows a college financial aid applicant being asked, "So where do you see yourself fitting into "late-stage capitalism?"

"Late-stage capitalism?"

Are we in fact witnessing the twilight years of capitalism?

After the past 50 years, during which capitalism has spread across developed and developing countries around the globe and arguably helped to lift more than two billion people out of extreme poverty?

Even as capitalism has powered one of the longest and most sustained economic recoveries, as well as one of the most durable bull markets in our lifetimes, with the S&P 500 trading near all-time highs?

Economically speaking, the past 50 years have been as good a period in human history as has existed in human history. The so-called "Misery Index" – the sum of the unemployment rate and the inflation rate (developed by Arthur Okun, a head chairman of the Council of Economic Advisers under President Johnson) – is lower at any time since the 1950s.

But you wouldn't know it from much of what you read, watch and hear today. 

So What's Going On?

If we dial down the animosity, overheated rhetoric and political partisanship, then these headlines and sound bites reflect one of the important debates we could be having: What societal goals do we want our free-market economic system to support?

It's not a new conversation. But it's been evolving and getting more intense in the 21st century. We can't seem to make up our minds about what we want. 

Going into the financial crisis of 2008 – 2009, society was sending signals suggesting we wanted growth at any and all costs. Leverage was the tool used to jack up what had been sustainable growth to unsustainable levels.

Then after the world stepped back from the brink of financial collapse, we started introducing modifiers in front of the word capitalism – moral capitalism, inclusive capitalism, fiduciary capitalism, sustainable capitalism – modifiers signaling we didn't want growth that: 

These modifiers seemed to convey a desire for growth balanced with economic stability, sustainability, equality and intergenerational equity.

Then along came Donald Trump, who promised in 2016 to deliver better standards of living for the middle class – people on the bottom 60% of the economic ladder who haven't had real (i.e., inflation-adjusted) income growth since 1980 – through his own version of "Ayn Rand capitalism," powered by a $1 trillion tax cut and one of the most sweeping across-the-board deregulatory initiatives we have ever seen. 

Unfortunately, the design of the tax cuts, combined with low interest rates, has supercharged the wealth of the top 1%, whose outsized share of financial assets is now worth more than the bottom 99% combined. 

At the same time, so-called "oligarchic drift" – the ability of corporate and individual actors to tilt the playing field in their favor and influence the writing of the rules of the economic game to their advantage – has become more and more pronounced. 

These developments have energized many groups, including the progressive and more extreme political left, who are now calling to replace capitalism outright with "socialism."

Throwing the Baby Out With the Bathwater?

So, is it time to abandon the most successful economic system the world has ever seen?

In my opinion, that would be a huge mistake.

But we need to acknowledge that capitalism, as it exists today, is increasingly seen as failing to serve a broad-enough segment of society's needs.

An insightful analysis of how capitalism is falling short was recently offered by billionaire hedge fund manager Ray Dalio. In an article titled "Why and How Capitalism Needs To Be Reformed," Dalio proposed a critique of capitalism focused on inequality of opportunity:

"I have also seen capitalism evolve in a way that is not working well for the majority of Americans because it's producing self-reinforcing spirals up for the haves and downs for the have nots. ... This is creating widening income/wealth/opportunity gaps that pose existential threats to the United States because these gaps are bringing about damaging domestic ... conflicts [that] are weakening America's condition." 

Among the many data points offered by Dalio is the fact that Americans whose fathers were in the bottom income quartile have a 40% chance of staying there. This fact is supported by The Economist's recent "Special Report – Poverty in America," which noted "child poverty often leads to adult poverty and all of its problems" and "where you grow up affects the trajectory of your life."

Our Challenge

As participants in and beneficiaries of the most effective economic system the world has ever invented, we all need to help reframe the conversation about capitalism to balance negative narratives being amplified through the megaphone of the current presidential campaign. 

Some of this is already happening. This summer, the Business Roundtable (a collection of more than 100 CEOs of the largest American corporations) issued a landmark statement endorsing a new definition of corporate purpose. 

Corporations, the group stated, need to commit to delivering value to all stakeholders, including not just shareholders but employees, customers and clients, suppliers and host communities – as well as to "an economy that serves all Americans." 

An important first step. But I think advocates of capitalism need to go further. 

Our discussion should focus on the challenge of inequality of opportunity raised by Dalio. Opportunity is, after all, a core element of the American Dream, enshrined in our Declaration of Independence through the iconic clause, "life, liberty and the pursuit of happiness." Opportunity is the reason so many people come to America.

One of the most inspiring cases for capitalism is the Netflix documentary The Pursuit, which features Arthur Brooks, former President of the American Enterprise Institute. 

In the documentary, Brooks describes capitalism as "an aspirationally based system." An ardent supporter of free markets, he calls himself a "warrior for opportunity."

Capitalism, he says, needs to start with "a want to lift people up." He also says, "Capitalism alone can't fix society. ... Morals have to come first ... based on the sense of social solidarity ... a sense that we are, in fact, our brother's keeper."

That's ultimately what will underpin capitalism's legitimacy: to be an engine of opportunity. 

In that way, we all need to become warriors for opportunity. 

Financial Innovation ... for What and for Whom, Exactly?

Unless you've been taking an extended nap, you've probably read or heard about Libra, a proposed digital currency, over the past few months. A venture led by Facebook and a group of other organizations, it's one of many digital currencies vying to become part of our global financial system. But without proper planning, regulation and oversight, it could be a destabilizing force and end up doing more harm than good. 

Libra's stated mission is to "enable a simple global currency and financial infrastructure that empowers billions of people." As a potentially new currency with potentially massive reach, Libra is certainly worth a closer look.

But in addition to asking, "What exactly is this?" I'd argue we need to take a step back and ask some fundamental questions, like:

The case for Libra and other digital currencies runs uphill. So far, digital and cryptocurrencies have been magnets for fraudsters and criminals operating on a global scale, in no small part because they lack the kind of regulatory framework and controls that exist around traditional currencies.

Facebook CEO Mark Zuckerberg and other advocates of Libra have touted potential consumer benefits like convenience, speed of execution and reduced transaction fees. But, as financial regulatory reform expert Karen Shaw Petrou asked in a recent column, does it make sense to "[justify] this Facebook venture on this single measure of consumer welfare?" She continued, "How much better does it have to be for price and speed – assuming [they arrive] – to trump safety, security, inter-operability, liquidity, transparency and sovereign backstops?"

Libra's risk–reward equation is asymmetric. When and if Libra experiences widespread adoption, consumers may gain access to a faster, cheaper way to pay for goods and services. If, however, it becomes a major force in the financial markets and somehow goes off the rails, then, as Petrou points out in another op-ed, "the household savings of vulnerable consumers and the stability of global finance are on the line." To the point, perhaps, of triggering another global financial crisis. In a recent report, the Group of Seven (G7) Working Group on Stable Coins warned that without sufficient regulation and oversight, digital currencies that reach global scale could threaten the international monetary system, monetary policy, global financial stability and even fair trade.

Petrou shared similar concerns in her op-ed: "Global regulators are deeply, and rightly, fearful that concentrated operational risk creates single points of failure with sweeping systemic consequences if too many counterparties or customers rely on a single system."

To be sure, there is nothing wrong with financial innovation, per se. In fact, as Yale Economics professor and Nobel Laureate Robert Shiller writes in his book, Finance and the Good Society: 

"[T]he best way ... is not to restrain financial innovation but instead to release it. ... Ironically, better financial instruments, not less activity in finance, is what we need to reduce the probability of financial crises in the future."

But, he goes on to say, "Innovation has to be accomplished in a way that supports the stewardship of society's assets."

Do digital currencies like Libra pass that test?