Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase? Topics covered include What are collateralized loan obligations (CLOs), how are they structured, and what has been their historical default rates. How much exposure do banks have to CLOs and will it impact your bank savings and investments. What are bank capital ratios and how are they calculated. How banks are more conservatively run due to the adoption of the Basel III … [Read more...]
MNY094 Plus: Banks, Loans, and Smart Beta Conditions
This week on Money For the Rest of Us Plus I discuss how central banks influence lending, what is causing the bank stock sell off, and what are some future enhancements to the Hub pertaining to smart beta and investment conditions. The episode length is 17 minutes. … [Read more...]
94: How Money Is Created and Destroyed
How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. Photo by Generation Grundeinkommen In this episode you'll learn: What is financial intermediation.What is fractional reserve banking.How banks create money through creative accounting.How banks decide how much money to create through their lending decisions.How central banks try to control the amount of lending.Why federal governments can … [Read more...]