Dispersing debt across the planet compounded rather than minimized risk

Evidence

Having internalised this belief they were able to internalise another: that prudence was for wimps and that smart people, like themselves, were actually giving capitalism a helpful boost. But by producing more and more debt, splicing it up in smaller and smaller pieces, and dispersing it across the planet, they were not minimising the risk, they were compounding it. Ruin loomed large over the horizon but financiers were simply unable to imagine that all these tiny pieces of debt, on which the West’s financial system rested, could crash in unison. — Yanis Varoufakis, Technofeudalism, 182

Categorization

• XREF: The classic macro-prudential critique of securitization, echoing Hyman Minsky’s financial instability hypothesis. — connects to: Manusmriti codified differential interest rates that institutionalized perpetual debt servitude — Ambedkar, B R, Annihilation of Caste_ The Annotated…, 60; Student-loan deferral programs compound debt by capitalizing unpaid interest — Dorothy A. Brown, The Whiteness of Wealth: How the Tax…, 309; Ancient caste law encoded differential interest rates legitimizing debt bondage (+1 more)
• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 182

Broader Connections

• Student-loan deferral programs compound debt by capitalizing unpaid interest #corroborates (0.95) — Dorothy A. Brown, The Whiteness of Wealth, 309
• Manusmriti codified differential interest rates that institutionalized perpetual debt servitude #complicates (0.90) — Ambedkar, B R, Annihilation of Caste_ The Annotated…, 60
• Ancient caste law encoded differential interest rates legitimizing debt bondage #complicates (0.90)