The following is an excellent article written by Alicia Giron and Alma Chapoy on the ResearchGate website on December 2012 titled “Securitization and Financialization” and I quote:
Securitization and financialization are the main causes of the financial crisis. These two concepts explain not only Minsky’s financial instability hypothesis but also the off-balance-sheet operations represented by derivative products, which are closely related to mortgage loans. Financial intermediaries in need of inquidity did everything in their power so that the securitization of assets could have a life of its own in financial operations. This is a process that is endogenous to the development of financialization. Because said process was a violation of the monetary economy, it was necessary for central banks to intervene as “lenders of last resort” as well as to nationalize and restructure all the financial intermediaries.
Do you want to read the rest of this article?
(AS THIS ARTICLE STATES, SECURITIZATION AND FINANCIALIZATION ARE THE MAIN CAUSES OF THE FINANCIAL CRISIS. THIS COINCIDES WITH THE EXCERPT I JUST PUT ON MY BLOG SITE TITLED “MAKERS AND TAKERS: INTRODUCTION.” BOTH ARE VERY INFORMATIONAL COMMENTS.
LaVern Isely, Progressive, Overtaxed, Independent Middle Class Taxpayer and Public Citizen and USAF Veteran
This entry was posted in Uncategorized
. Bookmark the permalink