Wednesday, November 25, 2015


Isaiah 50 has an interesting line:
Or to which of my creditors    did I sell you?
This is rather sophisticated finance, that is transferability.  We achieved that in the west only about 200 years ago or so, that is selling a debt on.  Our whole secondary market is based on this.

The idea was that if Joe and Jim make a deal, or form some kind of bond, neither Joe nor Jim could sell the deal to a third party, for neither Joe nor Jim had agreed to be obligated to this third party at the time of the deal was made.  Nor could they, for although they may foresee selling off a deal, their is no way they could know who would be the best bidder, from the sellers point of view.  Transferability just was not supported in law.

Now "to which...did I sell you" suggests slavery, or it just might mean the kind of ownership Uncle Sam has over people with students loans.  The first and best you produce goes to Uncle Sam, cause you took is loan.  Here the transferability occurs at the time of the loan, you borrow to pay the school, the bank takes a cut, the school takes the money, Uncle Sam owns you.

Back to Isaiah, here a debt is probably based on a loan, a charitable event, and the obligation is against the assets backing the loan.  Whatever the surety was, it could be sold off and you'd be obliged to pay that third party, apparently.

It is a mistake to think folks back then did not know anything we did not know, anything important, anyway.

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