By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026The point being that risk mitigation is never risk *elimination*, but markets have a hard time distinguishing between the two. Partly that's because of risk *shifting*. 25/ 1261 0
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026A lender who can "securitize" their loans (turn them into bonds and sell them off to investors) can insulate themselves from risk, because the people who buy the bonds are now carrying that risk. 26/ 2231 0
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026So many of our crises come from the intersection of these two phenomena: the promise of reducing loan risks without losing the risk premium *and* the fact that risk reduction can fail suddenly (or be revealed as nothing more than risk-shifting). 27/ 1324 0
Mike Jones @mikepjones1.bsky.social · 25/07/2026Something else happened. The securitised bonds were always going to default if a general housing market crash collapsed property values. They were supposedly protected from this by ‘monoline’ insurers which only wrote those policies, but could not risk pool because losses were highly correlated… 100 0
