Innovation or Greed?

Is it innovation or greed that is driving the subprime market down? This article from Bloomberg news suggests that it's innovation...but what's the reason behind the innovation? Richard Wiles of Morgan Stanley is quoted as saying that the Australian subprime market "is much smaller and has experienced less higher-risk product innovation than in the U.S."

On one hand, the innovation is a way to bring in new business that doesn't fit older models. On the other hand, innovation is a way to make the American dream of homeownership a reality. But creating programs that could kill the American dream, such as "exploding ARMs" and other exotic products, smacks of greed. It ends up hurting the entire economy as people lose their homes, more inventory ends up on the market, lenders institute greater restrictions, etc.

Here's the full article: http://www.bloomberg.com/apps/news?pid=20601081&sid=aZoVcXwZGXhQ&refer=australia