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.

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  • identicon
    Anonymous Coward, 21 Jan 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 !.

    reply to this | link to this | view in chronology ]

  • identicon
    Masked Dave, 21 Jan 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.

    reply to this | link to this | view in chronology ]

  • identicon
    ChimpBush McHitlerBurton, 21 Jan 2010 @ 2:21am

    Um...

    Ground Control to Evan Davis...

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

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 21 Jan 2010 @ 2:24am

    He did it

    David Bowie being God, he is obviously responsible.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 21 Jan 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.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 21 Jan 2010 @ 5:03am

    Where were the spiders ?

    reply to this | link to this | view in chronology ]

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

    Another?

    @He did it- Another gay god?

    reply to this | link to this | view in chronology ]

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

    Sarcmarc

    The article is a clever advertising ploy for the sarcmarc.

    reply to this | link to this | view in chronology ]

  • identicon
    NullOp, 21 Jan 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.

    reply to this | link to this | view in chronology ]

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

    Do not...

    DO NOT MOCK THE GOBLIN KING!

    reply to this | link to this | view in chronology ]

  • identicon
    Ven, 21 Jan 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.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 23 Jan 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.

    reply to this | link to this | view in chronology ]


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