The Problems With the Tradfi World

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Banks have been a fantastic tool for credit intermediation, but they're also levered. A fractional reserve system is, you know, you give me a dollar and I turn that into $11 of loans and securities. So they're inherently unstable. It was the 1907 financial crisis that was the catalyst for the creation of the Federal Reserve.

Jim Bianco is the Head of Bianco Research and owner of BiancoResearch.ETH, Jim is our go-to source of macro analysis from someone who also knows crypto.

Jim was early and loud about the initial Fed pivot into rising interest rates, all the way back in March of 2022, before much of the crypto industry really understood how significant interest rates can be.

Now, we’re having Jim back on for his 4th time to help us navigate this next wave of macro chaos.

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------ Timestamps:

0:00 Intro 8:10 Balaji's Bet 10:48 Arthur Hayes & Ben Hunt 14:30 The Fed's Balance Sheet Chart 18:00 Deposits in Banks Chart 27:20 BTFP 36:09 Raising Rates & Insolvency 38:35 The Long Tail of Banks 47:09 Treasury Returns?! 54:45 Uncertainty & Bond Market 58:20 Phase Change 1:02:24 Signs of Health 1:06:55 What is Jim Doing? 1:10:40 Closing & Disclaimers

------ Resources:

Jim Bianco https://twitter.com/biancoresearch https://twitter.com/biancoresearch/status/1638995201770536961 https://twitter.com/biancoresearch/status/1639004727001358339

------ Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

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