Comments on: The touchstones of Yap Wed, 07 Oct 2015 17:23:32 +0000 hourly 1 By: IanKemmish Fri, 13 Jul 2012 08:13:54 +0000 To some extent (and to echo some of the articles of your colleage James Saft in the run up to the crash), we did emulate the people of Yap. Most of us acquired a faith in the monetary value of large immovable blocks of stone. We called them houses. We even copied their way of making transactions – we used paper records and tokens of ownership of these blocks of stone – mortgages.

Where we differ from them is that, for them, the value of the stone was directly linked to the difficulty of obtaining it. So a house bought on a 120% mortgage would be worth less to them than an identical house bought on an 80% mortgage….