Financial Innovation from Perspective of the Subprime Mortgage Crisis

Diverse financial products on financial market have been questioned since the Subprime Mortgage Crisis broke out,which causes people to rethink financial innovation from a new perspective.The paper analyzes the process and main cause of the Subprime Mortgage Crisis,and goes further into the problems of the parties concerned as well as the necessity,supervision and regulation of financial innovation.Innovation plays an important part on financial market;however,we have to keep a clear head about the whole process so that the supervision,regulation and innovation go hand in hand.