
#22 The Octogenarian
Behind the Balance Sheet
Bank Cycle Bank Failures
I would thought that the problems would be private equity, shadow banking and all these loans that are being made by non-regulated entities. I still think that's going to be a problem. It was a long period of time in which deposits were lazy. They didn't care whether they earned 1%. They just leave the money to banks. The banks then said, we can earn net interest margin spread by going out. We don't have to worry about the accounting and those challenges. And today you're just going back to the cycle.
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