ResearchGate: Securitization and Financialization

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”

ArticleinJournal of Post Keynesian Economics 35(2):171-186 · December 2012with7 Reads

DOI: 10.2307/23469989
Abstract
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.

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(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

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About tim074

I'm a retired dairy farmer that was a member of the National Farmer's Organization (NFO). Before going farming, I spent 4 years in the United States Air Force where I saved up enough money to get my down payment to go farming. I also enjoy writing and reading biographies and I write about myself as well as articles and excerpts I find interesting. I'm specifically interested in finances, particularly in the banking industry because if it wasn't for help from my local Community Bank, I never could have started farming which I was successful at. So, I'm real interested in the Small Business Administration and I know they are the ones creating jobs. I have been a member of Common Cause and am now a member of Public Citizen as well as AARP. I have, in the past, written over 150 articles on the Obama Blog (my.barackobama.com) and I'd like to tie these two sites together. I'm also on Twitter, MySpace and Facebook and find these outlets terrifically interesting particularly what many of these people did concerning the uprising in the Arab world. I believe this is a smaller world than we think it is and my goal is to try to bring people together to live in peace because management needs labor like labor needs management. Up to now, that hasn't been so easy to find.
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