The Journey of Used Clothes and the Shortage of Collateral

This chapter explores the journey of used clothes from a throwaway society to remote tribes in Africa, where they are sold by clothing brokers. It also discusses the concept of collateral in the banking industry, specifically focusing on reverse repurchase agreements and the shortage of top tier collateral like US Treasuries. The chapter highlights the impact of this collateral shortage on interest rates and the risks associated with the shadow banking system.