The market usually operates smoothly, with firms offering U.S. Treasuries and other high-quality assets as collateral for cash overnight before buying those bonds back the next day. Monday, 8 April, 2019… Perhaps the good mods could create a new section to house all this hysterical conspiracy theory garbage. A Credit Suisse report last year said the company had the biggest proportion of outstanding loans to large stressed borrowers, including to Anil Ambani group companies and Dewan Housing Finance Corp., which was seized by the RBI in November. visit: https://keys.openpgp.org/ to get my public pgp message block to send encrypted messages. I think that Banking (all of it: commercial, investment and shadow) collapsed in 2008-2009. Image courtesy of my friend Chris Temple. Never attribute to intelligent design what can be attributed to randomness or stupidity, because there is a lot more  randomness and stupidity in the world than intelligent design. Reporting by Pete Schroeder; editing by Michelle Price and Lisa Shumaker. If you were an evil genuis, would you develop and release a virus that (i) ground all the economic activity that generates your wealth to a halt and (ii) might kill you? Although I see some relevant point raised in the vids I posted above, I should add that generally Robert Kiyosaki  / Rich Dad PoorDad should be taken with a large pinch of salt... https://en.wikipedia.org/wiki/Robert_Kiyosaki#cite_note-cbs-48, In 2007, the Ohio state Division of Real Estate and Professional Licensing issued a statement warning people against some of the illegal methods preached by Kiyosaki in his books and seminars.[37][38]. 2. They still needs the plebs to buy their crap though, which I do as least as possible. [41], He replies that his material is meant to be a motivational tool to get readers thinking about money rather than a guide to wealth, that "rich dad" was a fictional character,[42, ] and that the books are supposed to be "interesting" rather than involve a lot of technical material. With new COVID cases up 47% in the US this week and unemployment up over a million (again), it is now clear that catastrophic failures of leadership have created BOTH an out of control pandemic and an economic depression. People weren't conditioned into wearing masks, or avoiding public transport, or practising social distancing. https://www.cuttingscore.com/nassim-taleb-masks-matter-heres-the-model/. But that effort has sparked some concern among regulators that too much risk may be concentrated in one place. When the economy tur… Upload or insert images from URL. [40], Kiyosaki's advice has been criticized for emphasizing anecdotes and containing nothing in the way of concrete advice on how readers should proceed or work. If I were enjoying the lifestyle of the 1%, the very last thing I'd want to do is kick off some massive global event whose outcome I could not predict with certainty, when I could just carry on creaming off a life of luxury indefinitely maintaining the pre-COVID status quo. I wouldn't be at all surprised if this was premeditated. The $2.2 trillion repo market is a key source of funding for the U.S. financial system, as banks, companies and investors rely on it to meet daily operational needs. We have placed cookies on your device to help make this website better. Figure 1Leveraged finance in Europe and the US (US$ trillion) Source: BIS (2018). The expanded role of central clearing houses over the past decade has helped ensure that deals in the global swap market, which stands at more than $600 trillion in notional value, can be completed even if one party fails. As a result, regulators forced banks to process their swaps through clearing houses, which daily gather and manage collateral to secure the trade. For example:  I'd like to know if the 'new' COVID spending is offset by other planned government spending that is no-longer going ahead. Shadow banks generally operate outside the robust capital, liquidity and operational banking rules and are consequently less visible to regulators. ... according to the central bank. Their lives won't change in the slightest, or if they do, it will be for the better... And who's going to pay back that 80%? The shadow banking system played a major role in the expansion of housing credit in the run up to the 2008 financial crisis, but has grown in size … ... the results of the most recent bank stress tests in June 2019, ... and took a deep dive into why the crisis was happening. If government can break this link between sovereign debt yields and commercial interest rates, then government could remain solvent while facilitating an environment in which non-government institutions can be held accountable for their debts by meaninfull costs of debt service. ... India’s shadow banking crisis sparks credit crunch. They sell securities they hold in repurchase agreements (repo). [43], According to John Reed, a real estate advisor, Kiyosaki's books often advise illegal practices such as using insider tips from rich friends (insider trading), vulture real estate purchases, taking more debt on credit cards than one can handle and declaring bankruptcy whenever one's plans go awry.[44]. 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