Of course, Feed-in tariffs would be needed to make the thing go, but with the electric utility regulatory hodge-podge, and in an environment where states would be desperate to get capital investment employment, requiring an appropriate feed-in tariff in order to be eligible for REDB participation could well be enough to get a substantial slate of feed-in tariffs in place. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
Why is secured debt necessary at all? "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
After all, secured debt is not an instrument created in order to permit the existence of banks. Secured debt is an instrument that historically precedes commercial banking as we now understand it.
Abolition of secured debt in favor of all-equity liabilities would of course lead to a large reliance on Preferred equity with various heavy strings attached for non-performance that would press up against whatever boundary line was drawn for which strings were so heavy that the Preferred Share was secured debt in disguise. However, it would not eliminate private depository institutions.
And, indeed, we have learned how to regulate a commercial banking system so that it is not prone to periodic panics through asset value melt-downs. We have just not learned how to keep those regulations in force for more than half of a Kondratiev long-cycle. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
