The True Size of the Shadow Banking System Revealed (interview, conspiracy, March)
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quote:
The Board estimated the size of the shadow banking system to be just over $60 trillion in 2007, the year before the great financial crash. This figure dropped a little in 2008 but rose again to $67 trillion in 2011. That’s more than the total GDP of the 25 countries from which the figures are obtained.
Now Fiaschi and co say the Financial Stability Board has severely underestimated the total. These guys have developed an entirely different way of calculating its size using the emerging discipline of econophysics.
Interesting number they estimate right before the collapse. Very close to the same amt that just JPM held as derivatives. Some amazing numbers.
WhatisJPMorganChase? - My Common Sense Politics
quote:
JP Morgan Chase, as of March 31, 2008, was holding 89.99 trillion ($89,997,271,000,000) in derivatives. These were mostly government futures (bets on future prices). 89.99 trillion!!!!
This isn't new or novel, you just found a crack pot.
This entire reasoning is (for those who are tired of the loonies):
- Quote mine a bunch of people, completely forget to source it.
- Say there are more small companies than big companies.
- Apply inverse power law to a random number out of the authors butt.
- Conspiracy.
This is not a gem compared to his other papers, like how space is like the TARDIS in Dr. Who because..."Then things make sense." Not using any of that elitist math or physics I guess. Plus his paper on Feline Ballistics, which was disappointing...but at least could pass the first 2 weeks of basic physics. However it was sourced from Raza Syed, a physicist at Northeastern University in Boston, because the author couldn't do it himself.
I also love how the author claims to be the owner of arXiv blog that cites arXiv, because the real arXiv won't let him in the door. They are very good about banning crackpots, and likely got him for squatting with a similar name, forcing him to move to medium.com. Plus I love that this crack pots blog "takes the best from arXiv since 2007" and has 10 entries including the about page.
Congrats, all you have found again is another person in need of psychiatric help.
quote:
The Board estimated the size of the shadow banking system to be just over $60 trillion in 2007, the year before the great financial crash. This figure dropped a little in 2008 but rose again to $67 trillion in 2011. That’s more than the total GDP of the 25 countries from which the figures are obtained.
Now Fiaschi and co say the Financial Stability Board has severely underestimated the total. These guys have developed an entirely different way of calculating its size using the emerging discipline of econophysics.
Well sure...when you have overly regulated or too policy heavy governments, economies are driven into shadow markets. That has been an economic reality for hundreds of years.
This isn't new or novel, you just found a crack pot.
This entire reasoning is (for those who are tired of the loonies):
- Quote mine a bunch of people, completely forget to source it.
- Say there are more small companies than big companies.
- Apply inverse power law to a random number out of the authors butt.
- Conspiracy.
This is not a gem compared to his other papers, like how space is like the TARDIS in Dr. Who because..."Then things make sense." Not using any of that elitist math or physics I guess. Plus his paper on Feline Ballistics, which was disappointing...but at least could pass the first 2 weeks of basic physics. However it was sourced from Raza Syed, a physicist at Northeastern University in Boston, because the author couldn't do it himself.
I also love how the author claims to be the owner of arXiv blog that cites arXiv, because the real arXiv won't let him in the door. They are very good about banning crackpots, and likely got him for squatting with a similar name, forcing him to move to medium.com. Plus I love that this crack pots blog "takes the best from arXiv since 2007" and has 10 entries including the about page.
Congrats, all you have found again is another person in need of psychiatric help.
I think he had too much coffee. LOL.
Here is some information on shadow banking. Interesting what else occurred from 2000 on, when they say this took off. https://en.wikipedia.org/wiki/Shadow_banking_system
quote:
The volume of transactions in the shadow banking system grew dramatically after the year 2000. Its growth was checked by the 2008 crisis and for a short while it declined in size, both in the US and in the rest of the world.
Well sure...when you have overly regulated or too policy heavy governments, economies are driven into shadow markets. That has been an economic reality for hundreds of years.
Ironically, to some, the same entities regulating are controlling shareholder of these publicly traded corps and the biggest investors. Seems many things are going on in the dark.
Well sure...when you have overly regulated or too policy heavy governments, economies are driven into shadow markets. That has been an economic reality for hundreds of years.
That's interesting, because the economist who coined the phrase "Shadow Banking" argues that we need MORE regulation to contain it.
But hey, I'm sure you know more about this kind of stuff than a guy like McCulley, who ran the short term trading desk at PIMCO.
I don't think the issue is more or less regs. Having the right regs, enforcing them maybe.
However, the other statement does have merit. If they have gone to the unreg side. Which is apparently what seems to be happening.
quote from article:
The de facto arbiter of this question is the Financial Stability Board set up in 1999 by the Group of Seven developed nations. It estimates the size of the shadow banking system each year by adding up all the transactions that fall outside mainstream regulation, or at least as much of this as it can see.
I don't think the issue is more or less regs. Having the right regs, enforcing them maybe.
i agree, i think that's the overarching theme.
if you fastforward that video to ~6:30, he addresses this topic exactly.
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