Which financial products exactly have brought the world economic system to the brink of collapse?
Dr. Werner Rügemer: The essential financial products: • Securitization, therefore the resale of loans. In most cases, this has been done without even informing the original borrowers. So any long-term payment obligation (rental agreement, leasing contract, public-private partnership agreement, future fee revenue of a waste or water company, etc.) can be made to a tradable financial product • Collateralized debt obligations (CDOs), that is the aggregation of different bundles of securitized loans and the resale of these bundles of securitized loans; • Asset Backed Securities (ABS): long-term capital cycles based on real values, one example is cross-border leasing; • Derivatives, i.e. financial derivative products, e.g. betting on the development of equity and exchange rates; • Finance-driven mergers and acquisitions; • Short selling of securities; – In a broader sense, also various forms of privatization of public property and public-private partnership are included. We can say that som
