The financial markets are hiding a lot of things from you.
#Shadow_Banking
#Debt
#Crisis
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0:00 - Quick promo
2:02 - Intro
3:32 - Shadow banking and definition
8:31 - The debt financial market
12:35 - Securitization: what is it?
16:27 - Securitization destroys money
21:23 - Mid-term recap
23:11 - The money market: the importance of treasury
25:49 - The money market = treasury without cash = crises
37:30 - Why create treasury without cash?
39:40 - The appeal of shadow banking
43:13 - Uh? Recap
Videos mentioned in the episode:
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The subprime mortgage crisis: • Une vue d'ensemble de la crise des subprimes
The euro crisis: • La crise de l'€ part 01 : vue d'ensemble -...
Monetary theories: • D'où vient la monnaie ?
Monetizing valuable assets: • Pourquoi les entreprises rachètent-elles l...
Central bank failure: • Une Banque Centrale peut-elle faire failli...
Understanding the film "The Big Short": • The big short (le film): Clefs de lecture ...
The LTCM hedge fund collapse: • La faillite du Hedge Fund LTCM (1/5) Arbit...
Public debt cancellation: • Peut-on annuler la dette publique ?
The Lehman Brothers bankruptcy: • La faillite de Lehman Brothers (1/2) - Wal...
Sources and erratum:
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Slight division issue around 14 minutes.
BlackRock manages approximately $9.5 trillion in assets. That is: $9,500,000,000,000
BNP Paribas France makes loans totaling $400 billion. That is: $400,000,000,000
Regarding the loan amount per employee, my division is incorrect for BNP Paribas.
400 billion / 24,400 = 16.6 million, not thousands.
I am assuming that "shadow banking" = credit. That said, a more general definition of this term is also possible: "shadow banking" = non-bank financing. If this latter definition is adopted, financing through the sale of shares must be added to the analysis. And as a reminder, the sale of shares can take place through the financial markets (IPO on the primary market followed by trading of the shares on the secondary market) or through the world of private equity (these are funds that buy shares of unlisted startups... No secondary market for them. Their exit strategy is often an IPO on the primary market).
Sources:
This article by Rudy Bouguelli is amazing! The clearest thing I've read on the subject is: https://hal.archives-ouvertes.fr/hal-...
This one also inspired me a lot: https://uwe-repository.worktribe.com/...
Otherwise, I've read all of Daniela Gabor's work. It's not always very clear in my opinion. Nevertheless, there's a lot to learn if the subject interests you (especially the technical details). Here is his most recent paper: https://transformative-responses.org/...
Episode Question:
****************************************************** What is "shadow banking"? You may never have heard of it, yet the world of banking regulation and financial research is increasingly interested in this seemingly new concept. In this episode, I would like to show that it is actually another way of describing financial markets. "Shadow banking" seems obscure and incomprehensible because it encompasses almost all non-bank players present in financial markets, particularly in the debt market. That said, the concept isn't meaningless, as it allows us to question the fundamental difference between a financial intermediary ("shadow bank") and a deposit bank (printing money).
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Music:
The Making of Thumbs Up - Joe Bagale - • The Making of Thumbs Up - Joe Bagale
Sideways Samba - Audionautix - • Sideways Samba - Audionautix