Tuesday, January 13, 2009

Top Headline of the Week

'Did David Bowie Cause the Credit Crunch?'

http://new.uk.music.yahoo.com/blogs/guestlist/14935/did-david-bowie-cause-the-credit-crunch

With a headline like that, who's gonna walk on by? My immediate thought was, so it was David Bowie who suggested giving loans and mortgages to tens of millions of bad-risk Americans, in some kind of deranged social engineering experiment. But instead it credits David Bowie with inventing securitisation as a financial instrument. Now, I absolutely don't believe that is true. But as I'm not an expert on derivatives, somebody is going to have to debunk this one for me.

But I'd bet a very large pizza, plus six pack of cold ones, that David Bowie was nowhere near the inventor of securitisation when he/she invented it.

I could be wrong, but I really really don't think so.

1 comment:

Sophist said...

You're right. National Home Loans latterly Paragon was securitizing mortgages in the early nineties as a way of cleaning up it's balance sheet.