Dana El-Kurd

Yeah.

And that's the one that's going under right now.

But for a long, long time, the kind of shadow bank that was really important to the global economy, and this is still like a massive portion of how all of the economic system works, is these ones where you're trying to take debt and turn it into something you can trade for cash.

So, okay, you take debt, right?

You start off with a mortgage.

Okay.

So these mortgages pay out over the extremely long term, right?

But you want to be able to trade this mortgage for cash.

Right.

And this is a process called securitization.

Turning this mortgage into something you can sell for cash is making it into what's called a security.

Mm-hmm.

So now what happens, right, when it's packaged into a security, when there's a securitization process and then like the regular bank, the regular bank sends the mortgage to the shadow bank.

And the shadow bank like does like stuff and turns it into a security.

And now what this means is that instead of you who paid the mortgage owing money to the bank, you own it to the shadow bank or whoever the fuck the shadow bank sells it to, right?

Okay.

Yes.

Oh, yes.

The real bank is making so much money off of this.

This is why 2008 happened.