The hottest Financial Crisis Substack posts right now

And their main takeaways
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Top World Politics Topics

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 Unmaking of a Modern Economy: Brexit, Austerity, and Britain's Great Retraction

Brad DeLong's Grasping Reality • 376 implied HN points • 23 Nov 24
💰 Finance Economic Policy Macroeconomics Global Economy Financial Crisis Growth Strategies
  1. Britain's economy has struggled since 2008, missing out on a lot of potential growth. If things had gone differently, people would be much better off today.
  2. Policies like austerity and Brexit have hurt the economy, but they are not the only reasons for the decline. There have been many mistakes made over the years.
  3. The long-term effects of economic shocks, like the Great Recession, can have lasting impacts on growth. This shows how important it is to be careful with economic policies.

When we lost our minds: Pt.1 Overview

Erdmann Housing Tracker • 189 implied HN points • 09 Dec 24
💰 Finance Economic Theory Market Analysis Housing policy Financial Crisis Investment Strategies
  1. Many people believe the 2008 financial crisis was inevitable, but this oversimplifies what really happened. It's important to question how we understand the events leading up to the crisis.
  2. High home prices and rental costs are more about limited housing supply than just low interest rates. Building more homes could help address these issues.
  3. Experts often misunderstood the role of foreign capital and how it influenced the US economy. Rather than viewing borrowing negatively, it can be a way to invest in growth.

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.
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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.

How SP culture produces financial crisis

America in Crisis • 59 implied HN points • 01 Jul 24
💰 Finance Financial Crisis Economic Growth Corporate Profits Capitalism Taxation
  1. Financial crisis can stem from a shift in profit usage from investment to financial market growth, impacting economic growth.
  2. SP culture, focusing on shareholder returns through stock buybacks and dividends, can lead to financial instability and economic downturns.
  3. Minsky's financial instability hypothesis outlines how capitalist economies can transition from safe to risky financial structures, culminating in financial crises.

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.

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 Short selling 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.

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.

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 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.

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.

The Broken Bargain

Logos and Liberty • 0 implied HN points • 12 May 23
🇺🇸 U.S. Politics Economic History Income Inequality Financial Crisis Political Analysis
  1. Robert Reich's 'Aftershock' analyzes the 2008 crash and emphasizes the need for fundamental social and economic reform.
  2. Reich highlights parallels between the lead-up to the Great Depression and the Great Recession, such as income inequality, increasing household debt, and speculative activity.
  3. Reich proposes policy solutions to restore the basic bargain, including a reverse income tax, a carbon tax, and higher marginal tax rates on the wealthy, among others.

Will the financial overhaul bill fix what's wrong with banks?

Musings on Markets • 0 implied HN points • 29 Jun 10
💰 Finance Banking Regulation Investing Risk management Financial Crisis
  1. The new financial bill may not stop banks from getting too big. It sets some fees for larger banks but doesn't really limit their growth.
  2. The bill tries to reduce risky behavior by banks, like investing in hedge funds, but banks might just find new ways to take risks instead.
  3. While the bill could lower banks' profits in the short run, it might make them more valuable by scaring off competition, leading to higher returns in the long run.

Culprit found for market crisis!!!!

Musings on Markets • 0 implied HN points • 07 Jun 09
💰 Finance Market Theory Financial Crisis Investing Strategies Risk management Economic Policy Market Theory Financial Crisis Regulation Investor behavior
  1. The efficient market hypothesis claims that markets are generally accurate in pricing assets, meaning it’s tough for investors to consistently beat the market. Some people believe this idea is not entirely true.
  2. There are criticisms of the notion that financial leaders fully trusted the efficient market hypothesis. Many academics recognized market inefficiencies long before the crisis and warned about issues like asset bubbles.
  3. The idea that the financial crisis is largely due to the efficient market theory overlooks other factors. Issues like poor regulations, the creation of complex financial products, and incentive structures also played significant roles.