Previous Next Latest

British Press Blame David Bowie for Recession; We Clear Ziggy Stardust’s Good Name

1/13/09, 2:42 pm EST

Photo: Michael Ochs Archive/Getty

David Bowie is to blame for the recession and the current credit crunch, the U.K. press reports today. According to a BBC Today host, it was the Thin White Duke, Ziggy Stardust himself, who opened the flood gates for the current economic problems, all thanks to his “Bowie Bonds.” Back in 1997, Bowie issued “Bowie Bonds” as a way of getting his royalty money up front. He sold bonds of his future royalties to his fans for an immediate sum of money, figuring they’d be more patient about waiting for the royalties, plus it’d give them a stake in Bowie’s catalog.

Economically, the term for this action is “securitization.” The article speculates that banks were inspired by Bowie’s foresight and started to do the same thing, except with mortgages instead of Hunky Dory. The plan was so successful for banks that they lowered the bar on who got loans, figuring a deadbeat would be the problem of whoever scooped up the security, or the bundle of mortgages. Repeat this and multiply it by several thousand and you’re faced with one of the main reasons for the current recession.

We asked a friend of ours who works in real estate — and knows a lot more about these economic matters than we do — and he insists that “securitization” was taking place on Wall Street way before David Bowie masterminded his supposed scheme to cause a worldwide recession. In fact, the practice dates back to the 1970s, when “the U.S. Department of Housing and Urban Development created the transaction using a mortgage-backed security.”

In short, our Wall Street source says, “There is no chance in hell that David Bowie inspired banks to package loans into securities, have rating agencies rate them AAA blindly and sell them off to high leverage hedge funds.” We don’t know what any of that means, but it takes the blame of Bowie’s shoulders. Blame Bernie Madoff instead or something. Plus, keep in mind, the accusations against Bowie were printed in the U.K.’s infamous Mirror, proud authors of articles like “Michael Jackson is dying” and “Student puts her virginity up for auction.”

Related Stories:

Thurston Moore Pays Tribute to David Bowie’s Video Canon
How Scarlett Johansson and David Bowie Got Together
David Bowie’s “Ziggy Stardust” Suddenly Ubiquitous, Punny


Previous Next Latest

Comments

shane | 1/13/2009, 7:42 pm EST

Not that I am totally pro Bush or anything because I am not. I thought he lost his way but still did some things in the nations favor, but does this not go to show that everything isn’t his fault. Or is it just a coincidence that both sides of the pond are in a rescission?

spinach | 1/13/2009, 7:54 pm EST

The fact that Bowie hasn’t recorded an album since 2003 is not helping either.

AAA | 1/13/2009, 8:53 pm EST

yawn. bowie is irrelevant

Uh | 1/13/2009, 10:11 pm EST

I remember when Rolling Stone was the thinking man’s music mag, with intelligent articles and commentary. Now you follow up quotes about the recession with “we don’t know what any of that means.” Dumb. Dumb.

The Intl | 1/13/2009, 11:55 pm EST

Bowie..Irrelevant? Bowie hasn’t recorded an album due to health issues. The man deserved time out. A young daughter, heart attack, a work ethic that few could match, etc., the man has earned it. Most bands worth their weight cite Bowie as a huge influence..And by most bands, I mean good ones…Fall-Out Boy, and other “flavors of the month” obviously don’t fit in this category, if that’s what you mean by relevant….

Ziggy | 1/14/2009, 8:16 am EST

Banks did follow Bowie’s example and as a result enjoyed some golden years and were anything but heroes.

PhilKill | 1/14/2009, 1:32 pm EST

Shane,

Not necessarily because when the American economy gets into recession it takes with it the countries that have any connections to America. So maybe Bush is the one to blame after all…

TS RULES! | 1/14/2009, 5:28 pm EST

BOWIE sux compared to goddess TAYLOR SWIFT!

Anonymous | 1/14/2009, 8:21 pm EST

Taylor Swift is an awful stereotype with long, flowing hair. She’s been designed in a record company’s conference room.

Babylemonade | 1/15/2009, 11:40 am EST

Rubbish. Clearly The Daily Mirror knows little to nothing about securitisation. The concept of mortgage-backed securitisation dates from the 1970s and the Bowie Bonds were not issued until 1997. Although Bowie may have been a visionary in the artistic sense, he certainly did not spark a trend in complex risk transfer/repackaging model (securitisation). The boom in securtisation occurred as a result of the advent of credit derivatives and FED de-regulaition ; to even suggest that Bowie started it all is ridiculous and discredits Davies’ tabloid-level authority on economic/financial matters. In fact, securitisation of music/film revenues never really took off and is limited to a small handful of deals.

jeeze | 1/21/2009, 11:18 pm EST

I dont see why some of you are getting on Bowie for not recording a record since ‘03…

Hello!!!

He has a family, and a life. He shouldn’t make albums all the time because something like ‘Tonight’ will probably happen.

Hes only human, and lets not forget he had a heart attack in 2004. Give him a break.

Shane, I kinda agree, its not entirely bush’s fault its everyones fault for getting into debt themselves. Im getting tired of people blamming everything on Bush.

Uh, you are halarious.

In conclusion, my reaction after reading this article is: “WTF?”

Rob | 1/25/2009, 1:34 pm EST

Who knows, not me,
I never lost control,
Youre face, to face,
With the man who sold the world

Marion Ziemke | 2/9/2009, 11:14 am EST

Obviously they´ve got this idea from his album title “The man who sold the Word”… or even from his film by Nicholas Roeg “The man who fell to earth” when his screen character Thomas Newton brought the economy of the world down through his all prominent company, offering more new invented products then the consumer could cope with.
But I do really think that he is innocent in our present case. For usual there are various factors that trouble an existing systhem not just one influence and it can be argued that this economy crisis has it´s roots in the distant past maybe way back in the 70s.
David Bowie was always a master of illusion when he during his Ziggy years made the people believe that he was from outerspace and his mother a princess from a foreign planet… of course you can still get “confused” by that.

Bob | 8/10/2009, 12:27 pm EST

Well, time has proven the Mirror wasn’t that far off on the Michael Jackson article. Perhaps Bowie is to blame afterall.

X-Man | 10/26/2009, 12:15 am EST

When Bowie is down, everything is down!

Post A Comment

Caution: Off-topic comments will be deleted

Name:

Comments:



Advertisement

Advertisement