Securitization allows banks to repackage and resell debt, famously explained by actress Margot Robbie in a bubble bath in the film “The Big Short.”
The European Union wants to breathe new life into a financial practice most commonly associated with causing the 2008 financial crisis as it tries to jump-start banks’ lending to the economy.
On Tuesday, the European Commission will publish a package of legislation aiming to revive the industry of “securitization,” after strict postcrisis laws almost stamped out the use of the practice in the bloc.
Securitization is the practice where banks repackage and resell debt, famously explained by actress Margot Robbie in a bubble bath in the film “The Big Short.” The engineering allows banks to move some assets off their balance sheets, giving them more space to extend new loans.
So to summarize.
They want us to trade resources to transfer the ownership of “a measurement” of an entity its irresponsible behaviour with resources to a different entity.
This somehow makes it more likely that the institutions with the most economic resources let others use those resources for a small long term profit to those institutions?
Ands this does what exactly for the common human or the wellbeing and natural resources of the shared planet?
For all i understand this can create world peace but i am gonna need someone to explain that one to me if that is the case.