So you're referring to practices such as local banks taking on loans then immediately reselling to Fannie May?
Amongst other things, yes, the buying and selling of debt or rather the obligation to repay underlying the debt. When its what underlies almost every big corporate transaction and government project in the world its a tad worrying and unrealistic. Surely a world which never lives within its means can't be particularly healthy? I can almost guarantee that every single big merger or acquisition in the last few decades has been financed, to a large degree, by loans and the same goes, to a lesser extent, for a great deal of government projects. It's simply not healthy, particularly when the sums are so large as to become ridiculous e.g. how much is $1 trillion, what does that actually mean? There isn't even $1 trillion worth of gold in the world and there probably isn't even $1 trillion worth of other precious metals or stones either. With such large sums money and debt becomes just long lists of numbers, it has no actual real world application or implications, because no government or company will ever have $1 trillion worth of assets, except perhaps through debts others owe them...
