Reports Of My Death Have Been Greatly ExaggeratedI attended a briefing on the economy and markets last week. Some of the content was good if gloomy (maybe realistic!).
However, one speaker blithely said that "the originate to distribute model is dead". I had to take him to task about this-the word I used was "superficial". No doubt one of his ancestors in the early 1720s was going around telling anyone who would listen that "the joint-stock company model is dead", in the aftermath of the South Sea Bubble.
The plain fact is that both the joint-stock company and securitisation are useful techniques which have advantages for many parties. The abuse of something does not negate the value of the thing itself. 3,000 people die in road accidents in the UK every year. So if we go back to 19th century transport and banking, we'll all be much better off. Won't we?
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