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No, David Bowie Is Not Responsible For The Financial Crisis
from the ziggy-stardust-and-the-spiders-from-wall-street dept
We've talked in the past about some of the many rather innovative efforts by David Bowie to come up with new business models. He's been a huge pioneer in embracing what new technologies allow -- and also new markets and financial opportunities. Of course, most famously, many years ago he "securitized" himself with Bowie Bonds, that allowed him to cash out quickly, while letting others buy into his future earnings. It was actually quite a creatively done idea. But now, ChurchHatesTucker points us to an article by Evan Davis suggesting that David Bowie and his Bowie bonds are at the heart of the financial crisis. This is -- let's just say it -- flat out ridiculous. Financial engineering and all sorts of derivatives were already coming into fashion, and in the unlikely event that Bowie's setup inspired others to securitize mortgages, you can pretty much guarantee that someone else would have come up with the same idea before too long, anyway. Taking a future cash flow and turning it into a security isn't an inherently bad idea, either. It has many good and useful attributes. The problem wasn't securitizing the debt, but using that process (and further engineering) to hide the underlying assets and the true risk associated with the offering. That was not David Bowie's fault by a long shot. It's really too bad that an "economics editor" would confuse the basic concept of securitizing future cash flows with abusing that process to hide actual risk. And dragging David Bowie and his innovations down along with such a confusion doesn't help anyone.
12 Comments | Leave a Comment..
- Don't Try To Create An Illustrated Version Of A David Bowie Song... Or The Copyright Police Will Come After You
- Treating Houses Like Copyright... And Then Securitizing And Selling Off The Revenue From Future Resales
- Financial Reform Killing Off Bonds By Both Requiring Ratings & Making It Impossible To Rate Bonds
- Momentary Financial Crisis... And A Lesson In Unintended Consequences
- Same Economy, Different Bubble
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Missing the point by the enormous margins that only the Masnicks can achieve !.
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Oh come on!
It's just a funny anecdote.
It's also the most concise description of the credit crunch I've ever read.
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Um...
Take your protein pills and put your (Aluminium Foil) helmet on...
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He did it
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The article is very clearly a light hearted attempt at explaining how the system works, Bowie merely being an introduction to the topic.
It would appear you are the one causing the "Overhype" Mr Masnick.
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Another?
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Sarcmarc
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Crash!
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Do not...
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Bowie did noting new
The use of the blame a celebrity tactic is just a cheap headline grab.
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