Comments on: Securitization – the Undead heart of the Shadow banking machine https://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/ Author of THE DEBT GENERATION Thu, 06 May 2021 15:04:32 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Golem XIV - Thoughts https://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-799 Mon, 09 Aug 2010 10:50:12 +0000 http://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-799 Morning Mr Eirik,

Thank you for the links. They are intereting peices. The increasingly short term of the debt is a problem. One that is being pushed up, as happens to a wave as it comes up the beach.

The shorter the debt the more frequently it has to be re-sold and hte more frequently you run the risk of not being able to.

The NYT peice was interesting to see the various strands of US right wing ideology starting to get fractious with each other.

As for the legality of creating a new currency. I take it as a direct measure of how far the global financial order is separating itself from the national level within which it matured.

Thank you for taking the time to comment as you do Mr Eirik.

]]> By: Lars Eirik https://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-798 Sun, 08 Aug 2010 14:25:42 +0000 http://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-798 A week old article from New York Times touching on the same themes

http://www.nytimes.com/2010/08/01/opinion/01stockman.html

and from today, Bloomberg, on the need for the PIIGs banks to refinance in the bond market when/if cut loose by the ECB

http://www.bloomberg.com/news/2010-08-01/banks-face-122-billion-bond-tab-as-europe-pays-up-to-sell-credit-markets.html

As you have already pointed out, their credit rating will not be better than their goverment's.

]]> By: Lars Eirik https://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-796 Sat, 07 Aug 2010 19:07:51 +0000 http://www.golemxiv.co.uk/2010/08/securitization-the-undead-heart-of-the-shadow-banking-machine/#comment-796 Yes, Mr. Golem XIV, and that bank-created money has even been given a name, the "NAV", the existence of which was quite unknown to me (maybe even to you?)before it was described very precisely in the Fed paper, page 14, first paragraph, that seems to sum up what you have very instructively spelled out for us in your latest posting. Is it not against criminal law to create a private currency in the US and in the UK? It most certainly is in my country, Norway, and I think it is considered the State's prerogative in most countries…?

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