This chapter analyzes monetary differentiation within formal organizations, banks, and other financial institutions. It demonstrates how, despite the advantages of liquidity, organizational budgeting practices create incommensurable categorical distinctions, akin to earmarks, within fungible money. Many forms of individual and organizational credit similarly involve earmarks that constrain the use and allocation of future purchasing power. Credit is always earmarked in terms of who is a legitimate recipient but also often in terms of how the money can be used. A home mortgage, for example, can be used to purchase a house but not a car. The chapter also considers whether the financialization of the economy “has helped to monetize more of the world.” It finds instead unexpected limits to monetary valuation. In the contemporary over-the-counter derivatives market, for instance, participants often rely on non-price-based forms of valuation.
Reconsidering the Application of the Holder in Due Course Rule to Home Mortgage Notes
