How can we apply the same emergency measures that Harvard and other universities are using to navigate a financial crisis? Also, how universities invest their endowments and what their performance has been. Topics covered include: What has led to the financial crisis at Harvard What actions has the university taken How do endowments invest and spend their funds How endowments maintain intergenerational equity How we can apply the principles universities use in our own … [Read more...]
333: How The Covid Shock Nearly Destroyed The Financial System
Why the Federal Reserve had to step in again to stop runs on money market mutual funds and keep the financial system from imploding. Topics covered include: What are the differences between shocks and vulnerabilities What are the four main vulnerabilities the Federal Reserve monitors How deleveraging and demands for liquidity lead to market stresses What are the types of money market funds and how were they impacted by the Covid 19 shock How was Treasury bond trading … [Read more...]
285: Money is Debt
Money can be used to purchase things now or saved to purchase things later. If individuals want to save their money to purchase things in the not too distant future, they can invest in what are known as cash equivalents. These include savings accounts at banks or money market mutual funds. Cash equivalents pay a little bit of interest while also having price stability in that the value of deposits varies little from day-to-day. Money Is Debt Backed By Debt Gary Gorton, Professor of … [Read more...]
97: The Great Financial Crisis
What caused the great financial crisis and how the lessons learned apply to our own financial lives. Photo by A. Golden In this episode you'll learn: What caused the great financial crisis.What are mortgage backed securities and collateralized debt obligations.What is overcollateralization.How leverage and accounting rules contributed to the crisis.How we can apply the lessons learned from the great financial crisis to our own financial lives. Show Notes To Big To Fail: The … [Read more...]
