Subprime (Ir)Responsibility

VERANTWORTUNG IN EINER KOMPLEXEN GESELLSCHAFT/RESPONSIBILITY: RECOGNITION AND LIMITS, Anton Rauscher, ed., 2009

26 Pages Posted: 6 Sep 2009 Last revised: 13 Sep 2011

See all articles by Patrick Quirk

Patrick Quirk

Australian Catholic University; St Mary's College

Date Written: July 27, 2008

Abstract

This paper briefly outlines the sub-prime lending crisis and how it came about, including an explanation of who were the lead players involved in the popular practice of securitization, and American courts’ approach to exotic financial products. It also explains some of the differences between the European and U.S. markets for collateralized debt obligations ('CDOs'), and discusses possible implications for the notion of 'responsible' lending, both in domestic and global contexts. Some of the insights of Max Weber and Alasdair MacIntyre on bureaucracy and the law are used to point beyond greed to more systematic causes lying within modernity.

The paper concludes by suggesting that assets should be presumed best left on the balance sheets of those who originated them and that bad lending decisions should not be 'on sold' except in the most transparent manner possible. It also questions utopian dreams of 'bankruptcy remote' businesses and constantly rising prices. Modern bureaucratic structures that reach across institutions must not be allowed to command unrealistic and unsustainable economic models.

Keywords: subprime lending, Max Weber, bureaucracy

Suggested Citation

Quirk, Patrick, Subprime (Ir)Responsibility (July 27, 2008). VERANTWORTUNG IN EINER KOMPLEXEN GESELLSCHAFT/RESPONSIBILITY: RECOGNITION AND LIMITS, Anton Rauscher, ed., 2009, Available at SSRN: https://ssrn.com/abstract=1468987

Patrick Quirk (Contact Author)

Australian Catholic University ( email )

1100 Nudgee Rd
Banyo QUEENSLAND, Queensland 4014
Australia

St Mary's College ( email )

871 Swanston Street
Parkville VICTORIA, 3052
Australia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
46
Abstract Views
917
PlumX Metrics