Economist claims

He may be one of the UK's most venerated artists, but David Bowie still has a lot to answer for after being accused by one economist of helping cause the credit crunch.

Bowie launched a scheme in the 90s called 'Bowie Bonds' which entitled the buyer to a share in royalties from his illustrious back catalogue. By doing this Bowie collected his money up front, thereby leaving you with a win win scenario.

However, British economist Evan Davies has told the Mirror newspaper that this sowed the seeds for an economic disaster. “The banks were catching on to the idea. They thought, 'We have billions out there in mortgages which are going to pay us back very slowly. Why don’t we sell those and get the money now?'" he said.

“So the banks started doing what Bowie had done – in a big way.”

However these so-called securities later began to unravel, with the economist explaining:

“No one wanted to buy securities even if the securities were pretty good – which Northern Rock’s were. It was fashionable when David Bowie did it once. Ten years later it wasn’t.”


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