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.


Reader Comments (rss)

(Flattened / Threaded)

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    Anonymous Coward, Jan 21st, 2010 @ 1:45am

    ".... Evan Davis suggesting that David Bowie and his Bowie bonds are at the heart of the financial crisis."

    Missing the point by the enormous margins that only the Masnicks can achieve !.

     

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    Masked Dave, Jan 21st, 2010 @ 2:18am

    Oh come on!

    The article is clearly joking. Evan Davies doesn't seriously think the blame should be put at Bowie's feet!

    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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    ChimpBush McHitlerBurton, Jan 21st, 2010 @ 2:21am

    Um...

    Ground Control to Evan Davis...

    Take your protein pills and put your (Aluminium Foil) helmet on...

     

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    Anonymous Coward, Jan 21st, 2010 @ 2:24am

    He did it

    David Bowie being God, he is obviously responsible.

     

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    Anonymous Coward, Jan 21st, 2010 @ 3:45am

    He says: "So the banks started doing what Bowie had done - in a big way." - not that they started doing it because he had.

    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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    Anonymous Coward, Jan 21st, 2010 @ 5:03am

    Where were the spiders ?

     

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    Logo Design Blog, Jan 21st, 2010 @ 5:12am

    Another?

    @He did it- Another gay god?

     

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    Ted E. Bear, Jan 21st, 2010 @ 5:58am

    Sarcmarc

    The article is a clever advertising ploy for the sarcmarc.

     

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    NullOp, Jan 21st, 2010 @ 6:39am

    Crash!

    The crash was due to greed and lack of understanding of mathematics. The greed came from over zealous managers wanting to nail the big bucks for themselves and their companies. The lack of understanding math led them to fail to realize the shortcomings of a certain equation. But mostly it was greed. David Bowie doesn't enter into the picture.

     

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    L. Abrynth, Jan 21st, 2010 @ 8:13am

    Do not...

    DO NOT MOCK THE GOBLIN KING!

     

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    Ven, Jan 21st, 2010 @ 8:28am

    Bowie did noting new

    From what I read in the article Bowie did the rough equivalent of issuing a corporate bond. An idea that I think might have predated his own birth.
    The use of the blame a celebrity tactic is just a cheap headline grab.

     

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    Anonymous Coward, Jan 23rd, 2010 @ 11:04am

    Of COURSE David Bowie is responsible. Everyone knows that he is the Sovereign, and that the Guild is clearly behind the financial crisis.

     

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