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Did David Bowie Cause the Credit Crunch?
BlondeHeadOn
Posts: 2,277 Forumite
A bit of light relief from the Daily Mirror ...
http://new.uk.music.yahoo.com/blogs/guestlist/14935/did-david-bowie-cause-the-credit-crunch
"He's one of Britain's most influential artists but now David Bowie stands accused of starting one of the nation's latest trends: The credit crunch.
As implausible as it seems, the Daily Mirror has today accused the pop legend of inspiring ‘securitisation', one of the key factors behind today's economic fallout.
Back in 1997 Bowie came up with the idea of selling his projected royalties income in the form of ‘Bowie Bonds'.
In other words, Bowie realised he would have a steady stream of money coming in from the sale of his music but rather than wait for it to accrue, he sold the rights to the future earnings so he could withdraw a large cash sum there and then. This became known as ‘securitisation'.
Towards the end of the 1990s, the banks began to adopt a similar model but on a much much larger scale.
But instead of selling royalties in the case of Bowie, they began to sell on mortgages that they had loaned to their customers.
The premise was that the buyer of the loans would have a guaranteed income from the interest on the repayments and the banks would take an upfront cash sum in return.
Banks were lending out huge bundles of loans in the guise of contracts, giving the buyer the rights to the future repayments on those loans.
The problems began when loans were given to people who were then unable to pay them back. This caused many of these contracts to be rendered worthless and a lot of this bad debt had to be written off, causing the financial system to lose billions of pounds.
Did Bowie cause the credit crunch? No. But inadvertently he set the paradigm."
I've heard it all now - where would we be without the Daily Mirror???
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
http://new.uk.music.yahoo.com/blogs/guestlist/14935/did-david-bowie-cause-the-credit-crunch
"He's one of Britain's most influential artists but now David Bowie stands accused of starting one of the nation's latest trends: The credit crunch.
As implausible as it seems, the Daily Mirror has today accused the pop legend of inspiring ‘securitisation', one of the key factors behind today's economic fallout.
Back in 1997 Bowie came up with the idea of selling his projected royalties income in the form of ‘Bowie Bonds'.
In other words, Bowie realised he would have a steady stream of money coming in from the sale of his music but rather than wait for it to accrue, he sold the rights to the future earnings so he could withdraw a large cash sum there and then. This became known as ‘securitisation'.
Towards the end of the 1990s, the banks began to adopt a similar model but on a much much larger scale.
But instead of selling royalties in the case of Bowie, they began to sell on mortgages that they had loaned to their customers.
The premise was that the buyer of the loans would have a guaranteed income from the interest on the repayments and the banks would take an upfront cash sum in return.
Banks were lending out huge bundles of loans in the guise of contracts, giving the buyer the rights to the future repayments on those loans.
The problems began when loans were given to people who were then unable to pay them back. This caused many of these contracts to be rendered worthless and a lot of this bad debt had to be written off, causing the financial system to lose billions of pounds.
Did Bowie cause the credit crunch? No. But inadvertently he set the paradigm."
I've heard it all now - where would we be without the Daily Mirror???
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
0
Comments
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or maybe it was a long-time masterplan.
there's a few clues in my record collection:
'the man who sold the world'
'sorrow'
'ashes to ashes'.
any more?0 -
the loss of the "paypacket" caused the credit crunch.0
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Ha ha, love it, thanks Blonde...
torontoboy, don't forget 'the laughing gnome (of zurich)'...Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
0 -
Don't blame it on sunshine
Don't blame it on moonlight
Don't blame it on good times
Blame it on the Bowie
:dance:Wins 2007 :Boots £125, XBOX 360 & 3 games 2008:5 David Gray CDs £10 DVD voucher 2 Crossed Bones DVD & chocolate Torch. Smackdown 2008 game Deck the Halls Scrubs S6 High School Musical 2 ESR PC game Sherrybaby Beauty Hamper The Break Up Shutter0 -
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