Who's the man

Sunday, August 10, 2008

Securitization of Love

I was listening to the song "Future Lovers" by Madonna, when it occurred to me, what if we could can draw future contracts, forwards/options on love? Better still, can we securitise it?

Suppose A needs a steady stream of love, he/she can swap it (quite like a CDS?) with B who's happy experiencing the love in a more roller coaster like form. B gets to keep the excess spread, too!

Consider A dating B and not too sure B will be with him/her in a month. A can buy a 'long call' option to be loved 1 month from now. That should make A more daring/honest/straightforward in his/her dealings with B too, since A is covered for the future.

Since these are matters of the heart, matters of compatibility need to be taken care of. For the target, is the new provider of love a decent replacement for the previous/original? Is the provider of love accepting of the new target. Some standardization is needed, however, with the homogenization of population thanks to globalization, this requirement may soon be met, and we all will be happy givers/takers of love-at-will soon!

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