So now it is GLBSE Loan & Pawn? What's next, someone going to IPO their car or their gun collection? If I buy enough shares can I move into a room? How many shares for the garage? There are other mechanisms in place for situations like this (i.e. private lenders and Bitcoin banks). Crowdfunding the mortgaging of your home via GLBSE is just silly and takes away from the credibility of the exchange. Any real world investors looking at Bitcoin for the 1st time and seeing a 'security' like this listed on one of the main exchanges will probably take their money elsewhere, and for good reason.
Would the bank want to move in to a room if I got a home equity loan? They certainly considered it a security for the years of mortgage and made phenomenal amounts of interest off my back, perhaps you are right that does seem entirely silly.
This method as I have come to realize allows very small risk from the shareholders perspective, since they can buy a small piece of a fund that is backed by collateral which is like the basis of any standard security, isn't it?
Can you elaborate on what you find silly?
Please also understand this document is a request for comment not the actual fund.