Half of the global financial system's assets belong to shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them. Topics covered include: What are the roles of shadow banks What are examples of shadow banks How two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in losses How China's massive use of shadow banks differs from the rest of the world How individuals … [Read more...]
169: The Debt Ceiling—What Happens If the U.S. Defaults
What could happen if the U.S. Congress doesn't raise the debt ceiling and defaults on U.S. financial obligations. Photo by Augusto Navarro In this episode you’ll learn: What is the federal debt ceiling and why does Congress always wait until the last minute to raise it. How long has the debt ceiling been in place. What would be the consequences of default by the U.S. government on its obligations. Why does the government continue to run a budget deficit instead of a … [Read more...]
155: Clues To The Next Financial Crisis
How panic caused the great financial crisis and what to look for to see if it is happening again. Photo by Matthew Henry In this episode you’ll learn: What is commercial paper. What are shadow banks. How central banks stopped the 2008 financial panic. How financial indicators such as commercial paper-T-bill spreads, the Libor-OIS spread and the spread between credit default swaps and bond yields can help identify if the risk of financial panic is increasing. Show … [Read more...]
