Micheal: > Fictitious values can create real wealth. I can slice and dice bond. Sell > off parts of it to > people who are willing to pay because they can ensure the bond from someone > else. I pocket > some money for my efforts, then go out and buy a yacht.
But this is mostly about creation of money, irrespective of whether any income is generated through the creation of debt or not. In other words, even if the price of the "right" leg of a CDS is negative of the "left" leg of the CDS, so that there is no income generation, the person who is holding the positive leg can exchange it for a yacht, if not directly, through a sequence of transactions. What I am talking about is the creation income because the sum of the prices of the two legs do not some to zero, not theoretically, but in the market. Where is this "income" accounted for in NIPA? Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
