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Repo Crisis and Systemic Risk
- The current repo facility crisis stems from off-exchange, highly leveraged credit default swaps.
- This lack of regulation builds systemic instability, setting the stage for a financial crash worse than 2008.
Financial Crisis Worse Than 2008
- Today's financial fragility is worse than 2008 and heavily cross-border.
- Past crises, like Washington Mutual's undisclosed insolvency, foreshadow systemic failures ignored by regulators.
True Economic Impact of Tariffs
- Tariffs are a tax but are monetarily neutral because tariff revenue reduces deficits.
- They fix trade imbalances by discouraging offshoring while spreading benefits nationally.