Coding Debt | The Laws of Capitalism Episode 2

The question is not just how the law codes debt, but also why. Our legal code has been essential in the transformation of humble IOUs into elaborate financial contracts, and the creation of an entire finance industry.

Prof. Pistor examines how the law has accompanied the evolution of negotiable debt instruments, from the simple IOU, to bills of exchange in Medieval Genoa, to securitized assets in the modern day and on to derivatives. She examines the securitization of mortgage debt in the modern United States in the lead-up to the financial crisis of 2008.

[biggyls]

Professor Pistor is a genius. I took her course at Columbia Law. It was by far the best intellectual experience of my life.

[theswiftschoolofselfhealing]

To the victors go the spoils. That is the definition of capitalism; according to her explanation. They did what they did because they wanted to, not because it was fair or helped anyone. Huge difference...and then those 'ideas' became law...not because it was just of fair. The law has nothing to do with fairness...it has to do with those who wrote the law protecting what they wrote. They made it up based on what? Ownership. No wonder we have all the problems we do. If one more person says we are a nature of laws I think I will scream, as if those laws meant anything other than what I stated about. This system we have is unsustainable because it is built on greed, not on humanity.

[BradSamuelsPro]

Well. I'm definitely going to read her book. I love this information density.

[clarityendschaos]

Minorities were excluded from these types of mortgages. There a book called The Color of Law or the The Color of Money. The mortgages were underwritten by the federal government thus hwhite homeowners got a subsidy to take out these mortgages. This helped to create the hwhite middle class in the suburbs.

[navintamilchelvam]

Well explained about CDO! Thank you very much.

[FranksAbsNotAvailableWow]

Something weird happened with this video, it's 4-5 minutes shorter than the rest in the series and it cuts off in the middle of a sentence.

[sheemakarp]

At around 5:47 she says “Genoa, ” but the caption says Geneva. Please take note & also correct, if possible 🙏🏽

[tradeprosper]

Interesting that she didn't mention subprime, rating agencies or insurance which also contributed to the financial crash. Trying to keep it simple I guess.

[kuriousarts]

What's now needed is a coalition of debtors that operate in unison. The fundamental mathematics here is that of asymmetry - of information, clout, and fiat. The dark beauty of this is that the legal system is not a fact of nature. It falls apart when things move in concert. The home owners pay the mortgage that pays the police and any other coercive force.

[DrBretPalmer]

Very good video. So in the end it was the government buying the mortgages, so lenders didn't have any skin in the game.
So this is an example of why governments shouldn't try to interfere with the again!
Thank you again, great video.

[SanketGuptaMusic]

You didn't explained Fully, how claros get funded

[timothykangethe]

Educational Economics information broken down in an Articulate manner. A consequent build-up of Plutocracy by the Owners of Capital.

[sahhaf]

Dear Prof. Pistor, If you can also tell us what is the legal basis of Eurodollar markets, I'd be thankful...

Let me explain my question in more detail: A friend of mine told me that if two banks in say, Egypt, wire-transfer dollars between them, that dollars must go through the SWIFT system of US, even when these two banks are 100 meters from each other.. In other words, the money must first go from Egypt to US then from US back to Egypt. Why so? What is the legal basis of that? Do US still have legal rights on dollars which are outside of US borders?
Is there any local obstacles for the banks outside of us to transfer dollars between them without using US as an intermediary? Or, is everybody using swift just because it is convenient?

[zadokisrael]

The Government allows its licensed private sector to originate a “mortgage” security instrument pledge that secures a promissory collateral note, attached to a certificated security of a security certificate that represents a security of an employee account that has been assigned to an individual-natural and legal person. THIS IS WHAT SHE IS SAYING.

[grapeshott]

Too fast explanation. Not even a pause in the video.

[thorstenroberts]

Tranches... "which slice of this polished turd would you prefer, good sir?"

[patrickmccormack]

Student Financial Debt: Is this an example of coded debt. If so, it should never have been and it should not be. What is Coded Debt? Answer: Technology.

"This shit's got to go." - Jacque Fresco

[akinkaynakmak]

In Türkiye we are using paper like your telling but law and bank system is not work for this system because People or companies can write any number on this paper. İn crysis lots of People fall in shock
Maybe barter system can be better than like this system

[PoliticalEconomy]

What about gov debt? Does that count as a capitalist law?

[smallpeople]

This is sad. I firmly believe that many things should not be commodified, like healthcare, basic necessities like food and water, etc