I find those who do have a few things going for them. To start, they managed money or worked for outfits that did that. Also, they do have some grasp of the shadow money (banking) system, something most economist discount.
They dismiss reserves, for the most part, in the equation, knowing they do little for economic output. Collateralization and cash flow is more important.
Posted Using LeoFinance Beta
I never encounter shadow banking in my previous reading that's why I am really clueless about the Eurodollar market. Reserves too, I find it a controversial topic. At first, it was unthinkable for me for a bank to operate without reserves, but when I think of cryptocurrency we are doing here exactly the same thing. As for collateralization, it is interesting that I find confirmation even from the pens of the experts themselves in international finance an alarming admission about the existence of a significant percentage of questionable assets. As for cash flow, yes it is king.