Tag Archives: extension of credit

Risk in the Aggregate Dimension

The Public’s Interest When we pay interest (rent) on the public debt, what are “We” renting? What’s the compelling (subordinating) interest? If my rights are endowed by the Creator, why do I have to rent it from somebody else? Why … Continue reading

Posted in Political-Economy and Philosophy | Tagged , , , , , , , , , , , , , , | Leave a comment

Rating the Risk

When a bank scores your worthiness, when it measures how valuable you are, it is rating the risk. The result is your credit score, which objectively measures the probability of default. How your credit scores not only determines the rent … Continue reading

Posted in Political-Economy and Philosophy | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Calling the Margin

In order to magnify the profit at the margin it is necessary to magnify the risk. Big bankers call this, creating a “synthetic risk portfolio” (SRP). Synthetic risk products are then sold, priced (rated) to the probable risk of default … Continue reading

Posted in Political-Economy and Philosophy | Tagged , , , , , , , , , , , , , , , , | Leave a comment