2min chapter

Forward Guidance cover image

The Fed’s "Controlled Demolition" of The Financial System | Danielle DiMartino Booth

Forward Guidance

CHAPTER

The Shadow Banking System and Private Equity

Private equity bought assets at overvalued rates, relative to where interest rates are. How are you going to realize those losses? Banks play by the rules. Private equity has written their own rules and they are gating withdrawals. The shadow banking system can be quote, safer because no one is allowed to take their money out.

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