The hottest Financial Crisis Substack posts right now

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Chartbook 261 A failed project of state-capitalist relations? The Eurozone at 25 (part 2)

Chartbook • 2174 implied HN points • 20 Jan 24
🌍 World Politics European Union Financial Crisis Banking Sector
  1. The Eurozone faced its first profound crisis triggered by Europe's banks, not public debt, during the North Atlantic credit boom.
  2. The financial crisis revealed institutional deficits in the Eurozone, showing the deep connection between state and business interests.
  3. Despite efforts at recovery, European banks still struggle to match the profitability and success of their American counterparts, raising concerns about the future of banking in the Eurozone.

Quick Essay: The Federal Reserve and Critical Moments in U.S. Monetary Policy

Chamath Palihapitiya • 3871 implied HN points • 15 Nov 23
💰 Finance Monetary Policy Federal Reserve Economic History Inflation Financial Crisis
  1. Before the Federal Reserve, the U.S. had banking issues and crises, leading to the need for a central bank in 1913.
  2. The Great Depression prompted key reforms like the Banking Act of 1933 and the Gold Reserve Act of 1934.
  3. The end of the Bretton Woods system in 1971 marked a shift to Fiat currency and the decline of the gold standard.

The Last Call of the Corporate Peacock🦚

Workforce Futurist by Andy Spence • 293 implied HN points • 23 Feb 24
💼 Business Workforce Trends Corporate culture Financial Crisis
  1. Leaders bring workers back to the office to showcase dominance and status through Corporate Peacocking.
  2. Some companies resort to cringe-inducing tactics like threatening employees through internal videos to justify return-to-office mandates.
  3. RTO policies might represent a last attempt by leaders to assert control as industries adapt, city leases expire, and virtual realms replace in-person office displays.

Stuffing the Coffers

The Dollar Endgame • 279 implied HN points • 19 Jan 24
💰 Finance Banking Regulation Economy Federal Reserve Financial Crisis
  1. Regulatory changes post-2008 require banks to hold more US Treasuries. However, banks are running out of space and time.
  2. The Fed made an exemption of Treasury bonds from the Supplementary Leverage Ratio (SLR) to boost lending and stabilize markets during the COVID-19 crisis.
  3. The SLR calculates a bank's solvency by dividing Tier 1 Capital against assets. Adjustments during crises help banks manage potential losses better.
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I SOLDI IN BANCA

ANDREA CECCHI Newsletter • 176 implied HN points • 09 Feb 24
💰 Finance Banking Financial Crisis Risk management
  1. People have lost their life savings trusting banks - it's not a safe place for all your money.
  2. The 2008 financial crisis led to a wave of bank failures, and in 2023 banks are again under stress.
  3. It's important to understand the three fundamental truths of the modern banking system before depositing money in a bank.

Letter #152: Steve Eisman, Danny Moses, Vincent Daniel, and Porter Collins (2024)

A Letter a Day • 176 implied HN points • 03 Feb 24
💰 Finance Investing Financial Crisis Economy Stock Market
  1. Four 'Big Short' traders from FrontPoint Partners discussed their experiences and current perspectives on investing and short selling in the financial industry.
  2. They shared insights on their past trades like shorting Tesla and UPS, as well as their current high conviction trades and concerns about areas like commercial real estate.
  3. Despite changes in their approach and careers, these traders continue to monitor credit quality and consumer behavior as key indicators for the US economy.

Interest Rate Risks are Collapsing Banks

The Informationist • 1650 implied HN points • 30 Apr 23
💰 Finance Banking Interest Rates Risk management Financial Crisis Investments
  1. Interest rate risks can lead to bank collapses due to mismanagement and lack of oversight
  2. Different types of interest rate risks affect banks' financial positions, such as repricing risk and basis risk
  3. It is important for individuals to be cautious with their bank deposits and consider diversifying investments based on personal risk tolerance and long-term goals

Michael Hudson: Why the US banking system is breaking up

Geopolitical Economy Report • 1275 implied HN points • 12 Mar 23
💰 Finance Banking Federal Reserve Interest Rates Financial Crisis Cryptocurrency
  1. The US banking system is facing a significant crisis due to the consequences of past actions, like the 2009 bank bailout and the quantitative easing measures that followed.
  2. Rising interest rates are causing bond prices to fall, which is putting pressure on banks as their assets decrease in value against deposit liabilities.
  3. The current banking crisis is reminiscent of past financial failures, like the savings and loan crisis in the 1980s, and is exacerbated by factors like the cryptocurrency wave and derivatives trading.

Long Take: FDIC consent order vs. $3B banking-as-a-service champion Cross River Bank

The Fintech Blueprint • 609 implied HN points • 03 May 23
💰 Finance Banking Regulation Crypto Stablecoins Financial Crisis
  1. The FDIC is closely monitoring banking practices to ensure systemic stability during a crisis.
  2. Cross River Bank, a $3B banking-as-a-service champion, is under scrutiny and must comply with a consent order.
  3. Regulators are concerned about fintech companies entering the banking sector without proper oversight.

The Catalyst That Could 'Standardize' Bitcoin

QTR’s Fringe Finance • 28 implied HN points • 12 Feb 24
💰 Finance Bitcoin Cryptocurrency Financial Crisis Monetary Policy Inflation
  1. Bitcoin adoption could be accelerated through a major financial crisis where people seek an exit ramp from the traditional financial system.
  2. The decentralized nature of Bitcoin allows for success to be tied to its growth, empowering individuals who are tired of traditional financial institutions.
  3. Bitcoin offers a chance for the public to break the cycle of bearing the cost of financial failures by opting out of the current system and embracing digital freedom.

A Tale of Two Currencies

BowTiedMara - Geoarbitrage & Mobility Assets • 137 implied HN points • 24 Apr 23
🌍 World Politics Currency Inflation Monetary Policy Central Bank Financial Crisis
  1. Argentina has a history of economic turmoil with multiple currency crises and hyperinflations.
  2. The government deficit in Argentina has grown significantly since 2011, leading to economic challenges.
  3. Potential solutions for Argentina's economic crisis include complete dollarization, adopting a Bitcoin standard, or exploring joint currencies with other countries like China.

How Oversold Are Regional Bank Stocks?

Policy Tensor • 117 implied HN points • 04 May 23
💰 Finance Market Analysis Investing Banking Financial Crisis
  1. US blue-chip equities are a contested and efficient market, so price fluctuations usually revert to fundamentals.
  2. During market distress, patient investors with deep pockets may swoop in to buy assets at undervalued prices.
  3. Regional bank stocks are currently oversold, with prices far below economic fundamentals, presenting a potential opportunity for value investors.

The Parable of Angelo Mozilo

Net Interest • 22 implied HN points • 21 Jul 23
💰 Finance Banking Mortgages Financial Crisis Insider trading
  1. Angelo Mozilo was a key figure in the mortgage industry, starting Countrywide Financial and seeing its rise and fall.
  2. Countrywide's shift towards subprime lending led to risky practices, with Mozilo's ambition for growth overriding concerns about risk.
  3. Despite the financial crisis fallout, Mozilo personally profited from insider trading but faced legal repercussions, highlighting the recurring issue of trading risk for growth in financial services.

SVB’s Failure and the Lack of Reserve Requirements

Satiation Point • 1 HN point • 25 Mar 23
💰 Finance Regulations Reserves Banking Monetary Policy Financial Crisis
  1. SVB's failure had multiple causes, including heavy investment in risky assets and inadequate insurance for deposits.
  2. Abandoning reserve requirements for banks may have contributed to the recent bank run crisis.
  3. Increasing required reserve ratios above zero could help prevent similar crises by ensuring banks hold more funds to satisfy depositors.