Debt securitization is a foundation of the “free trade” system promoted by the Bush Clinton Bush administrations. It allowed foreigners to ‘invest’ in the US economy, one of the ‘bargaining chips’ in the many “free trade” secretariats.
“free trade” is a tool for the destruction of the US domestic economy, and nothing more.
“The financial sector now represents 40 percent of GDP, which is to say that the exchange of paper claims to wealth is the driving force behind economic growth.
“The production of useful things, that actually improve people’s lives and raise the standard of living, has been replaced by the trading of complex debt instruments and opaque derivative contracts.
“Securitization is at the very heart of Wall Street’s Ponzi-finance scam. It creates profits by transforming liabilities into “cash flow” which can be sold at market. Bottom line: Factories and manufacturing are out. Toxic paper and garbage loans are in. “