WB/IMF reconstructing capitalism yet again - !!??

[Steve Diamond <sdiamond@xxxxxxx>]

Re:

Forget Locke? From Proprietor to Risk-Bearer in New Logics of Finance

Bill Maurer..........

God forbid that postmodernism should try to take on global finance.  I don't
know who this guy is, but he doesn't know a lot about the global capital
markets.  For example, "securitization" and "secured interests" are NOT the
same thing.    What the World Bank in emerging market countries is trying to
do is what every modern capitalist economy has done for decades or more -
allow creditors a claim on the assets underlying a financial instrument.
Securitization on the other hand is the creation of a new financial
instrument based on the bundling together of underlying income streams from
another set of assets - if you want to understand, for example, the collapse
of Superior Bank in Chicago, the Pritzker subprime lender, you need to
understand its ability to bundle together mortgages and sell them into the
capital markets - that is securitization.  It is a fascinating high wire act
underway in modern capitalism.

But I don't think "deconstruction" will tell us very much about it.


Stephen F. Diamond
School of Law
Santa Clara University
sdiamond@xxxxxxx

Stephen F. Diamond
School of Law
Santa Clara University
sdiamond@xxxxxxx