Diving into the Wreckage 6.4 Inflation and Bank Crisis w/ C. Derick Varn
The Antifada
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The Shadow Banking Sector and the Debt Ceiling
In a recent survey that came out from Bank of America all of a sudden you saw that the shadow banking sector became the scariest part of the risk portfolio for them. We have to look at that and understand why it is that the capitalists themselves are so freaked out. The original thesis of monetarism as manifested by Paul Volcker was that raising interest rates would discourage banks from making risky loan but it would also give them a lot of capital to pay back on saving rates. That's not true, what actually happens is private debt starts to increase pretty significantly.
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