When I read the title of the book being reviewed here, I.O.U.: Why Everyone Owes Everyone and No On Can Pay, I could only think of the story I told here some time ago about the merchants shipwrecked on a desert island. If you don’t recall it go to the link and check it out.
IMO what we’re seeing now in the financial system is the obvious outcome such a scheme. I honestly don’t see how trades becoming so disconnected from the market value of the underlying assets can possibly be healthy. Not to mention the risks attendant to changes in that value over time.