Dana El-Kurd

Yeah, it's good.

Now, the cost to the banks is that the feds get to see their balance sheet, right?

The feds get to see what they're doing with their fucking money, and they get to make sure that these banks aren't doing insane shit.

Okay, that makes sense because they're insuring it.

Yeah.

And that like they're not doing like unbelievably risky, awful shit.

And also that they're actually holding enough money to be able to pay people out.

Yeah.

Now, shadow banking boldly asked the question, okay, but what if you did all of the banking backwards, no one had access to the books, and the government will only pay you back if the entire world economy looks like it's going to die?

I feel like at that point, the government should just...

step back here's the thing here's the thing right i i i yeah like i'm i'm so down with this like yeah i don't know fuck it like every single one of you motherfuckers is gonna pay this off by working as a barista for 30 years like fuck you but the government was like nah we want like we want capitalism to keep working make every hedge fund manager work at a waffle house yeah fuck them

Okay, I'm going to say something and then I'm going to make a disclaimer.

So the kind of shadow banks that did 2008 work in the opposite direction.

They start with debt.

They take that debt and they turn that debt into like cash.

Right?

No.

OK, and I also want to mention there's a bunch of other kinds of shadow banks.

The kind of shadow bank that's going under right now is not really this.

The kind of shadow bank that's like exploding right now is a kind of shadow bank that's like, what if what if a bank that wasn't a bank gave a completely unregulated loan with secret terms to a corporation?