Dana El-Kurd

That doesn't seem like a well-made chart.

No, here's the thing.

It's actually really good.

It's just this complicated.

I learned later from a paper by Copenhagen Business School professor Odney Helgedotter.

We're going to come back to Helgedotter's work a lot in this episode.

But I learned from her because she has also experienced seeing this same chart and going, what the is this fuck ass chart?

I found out that the Federal Reserve recommends that in order to have the diagram be legible, you are supposed to print this chart as a three foot by four foot poster.

Oh, that makes sense.

Yeah, right.

But like, again, this is a diagram that he's just labeling the parts of the system and making like a line that shows how stuff moves through it.

yeah so this is what we're going to get into in a second but first we have to talk about something even more bleak which is that oh yeah by the way these like non-banking bank things like these like all these like venture capital firms all these hedge funds all these fucking weird ghoulish banks that are not banks uh yeah they have twice as many assets than the regular banking system oh that doesn't seem good

Oh, it's about to get worse.

It's about to get worse, Molly.

Like, no, it goes in the fridge.

Oh, it's so bad.

It's so bad.

So, okay, there's a pretty good congressional report that I was talking about earlier that has this terrifying quote.

Quote, as of 2023, the broad measured total financial assets and narrow measure assets at NBFIs, this is the shadow banks,

reached $85.7 trillion and $22.2 trillion, respectively, in the United States.