Class Notes (811,170)
Canada (494,539)
Sociology (2,417)
SOCB50H3 (120)
Joe Hermer (89)
Lecture 9

Lecture 9

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University of Toronto Scarborough
Joe Hermer

Lec9Royal Canadian Mint hate making pennies o Used to be made of copper o But theyre unsuccessful because people like pennies o Why do people like pennies Because it makes money seem real since you get change o One of things bankersgovernment are aware of is that anything could trigger inflationFinancial fraud is difficult to do anything about is because abstraction of money thats involvedMost money exist as symbols its digital money that moves aroundContradiction inherent in structure of finance capitalism underlies ability of regulators to respond effectively to widespread fraud o Banks routinely refuse to disclose existence or summary of civil enforcement actions against them or individualsWhy Because it would undermine public confidence in banksBUT such lack of transparency has exacerbated misconduct Credit crisis meltdownCaused in particular by trading of derivatives collateralized debt obligations or credit swaps what Warren Buffet has called o financial weapons of mass destruction because of their complete invisibility abstract character as financial instrument and government and regulators have no info about whats going on with CDO because there are no regulations to do it o CDO was general cause of credit crisis o How they work there are lenders who sell toxic mortgagesessentially the banks would sell mortgages to almost anyone whether they can pay or notdiff landing
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