Marketplace Whiteboard
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Shadow banking
The shadow banking system is a key component of the U.S. economy, but the financial crisis has frozen it solid. Senior Editor Paddy Hirsch explains what shadow banking is and why it's important enough to warrant its own bailout, called the Term Asset-Backed Securities Loan Facility, or TALF.
Derivatives
Credit default swaps? They're complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: They're both derivatives. Senior Editor Paddy Hirsch explains.
Bonds, notes and bills
So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Senior Editor Paddy Hirsch explains.
Inflation
Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains
High-frequency trading
High-frequency trading is creating a ruckus on Wall Street. Marketplace Senior Editor Paddy Hirsch explains what high-frequency trading is and why some people are up in arms about it.
Factoring
Many small businesses get the cash they need to operate and expand from so-called factors. One of the biggest factors in the business is CIT, and with CIT on the ropes, small businesses are worried. Senior Editor Paddy Hirsch explains what factoring is, and how it works.
Financial alchemy
Many asset-backed securities have been downgraded from AAA recently. But at least one issuer has miraculously repackaged a downgraded deal to make some of its bonds worth a AAA rating again. Senior Editor Paddy Hirsch explains.
Where's the toxic waste?
Banks are paying back TARP money and claiming they're the picture of health. So what happened to all those toxic assets that were clogging their arteries a few months back? Senior Editor Paddy Hirsch explains.
Dark pools
Dark pools are exchanges where people trade stocks anonymously. Senior Editor Paddy Hirsch explains how they work, and why the SEC is considering regulating them.
The 'repo' market
Senior Editor Paddy Hirsch explains why the repurchase (or repo) market is a vital part of the financial system, and why the government is considering changes to it.
Meet Cap 'n Trade
Cap and Trade is the linchpin of the government's effort to curb carbon emissions. Senior Editor Paddy Hirsch explains how the cap and trade model works.
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Comments
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From New York, NY, 06/05/2009
No, I don't think the bank financial orgy needed to be bailed out by congress wasting the voters' wallet.
Court is for when AIG wasn't going to be able to honor any pay out on worthless financial engineering. If there's going to be cram down, it can be in court before bankruptcy.
But people buy into lies and are played for fools when they're ignorant. Like saying AIG needed to be 'bailed out' so that it can honor its bad underwriting, and other bad and flawed financial engineering.
NOT OUR PROBLEM.
They and their big corporate counterparties can duke it out in court.
NOT OUR PROBLEM.
They can make settlement with each other and their managements deservedly can suffer for their bad business decisions. 1T on the Voters wallet is despicable. And all for worthless paper and craven management frauds called financial engineering or otherwise.
I'd worked with people who advised healthy and sick banks and thrifts where we had to do recaps. I have expertise on this sector and its management self dealings at the big TOOBIGTOFAILs with its adroit shams to obscure the truth.
And this has been going on since the Fed hosed cheap credit into the economy; 80% of the worthless 1T of paper is lender driven .
Respectfully,
Andrea Psoras
New York
From Iraq, 05/09/2009
So what happens to the individual loans if they are bundled, but then no investors want to buy them and "Nationwide" fails? Are they just sold at a deep discount?
From Roseville, CA, 05/06/2009
Awesome job.
I was looking for something like this for a while. I would like to see a basic presentation on how to or what to look for in Company's income/balance sheets. I would appreciate if you could do that.
From San Diego, CA, 05/04/2009
This series and Marketplace in general are an outstanding resource. Always done in clear and concise, and entertaining terms. Keep up the great work! Sincerely, Jim Symons San Diego
From Rock Rapids, IA, 05/02/2009
Mr. Paddy Hirsch;
Thanks for your clear explantion and very excellent choices of metaphors and other ways of relating complex financial terms/products to simpler concepts.
i try to watch a few each week. Is there any chance of either compiling these into a DVD format or even
paperback with the white board drawings. as there are times my internet connection has trouble displaying the video - the voice gets out of synch to the pictures like an old godzilla or hokey martial arts movie. Thanks again for taking the time to research and present these topics it really is hard to find people who are VERY GOOD at teaching such things - in science my old favorite is still the works of Issac Asimov.
From Rock Rapids, IA, 05/02/2009
Mr. Paddy Hirsch;
Thanks for your clear explantion and very excellent choices of metaphors and other ways of relating complex financial terms/products to simpler concepts.
i try to watch a few each week. Is there any chance of either compiling these into a DVD format or even
paperback with the white board drawings. as there are times my internet connection has trouble displaying the video - the voice gets out of synch to the pictures like an old godzilla or hokey martial arts movie. Thanks again for taking the time to research and present these topics it really is hard to find people who are VERY GOOD at teaching such things - in science my old favorite is still the works of Issac Asimov.
From Portland, OR, 05/01/2009
Dear Mr. Hirsch,
These are simply the best explanations I have seen (and I have seen a lot of them).
If I may be so bold can I ask why this sort of speculation is not simply over producing money supply? Since they have no reserve requirements they can essentially loan out against there assets as much as they like (which would be as much as is asked I presume) and the other banks loan money into existence to leverage the purchases also. It seems to me that this would create an increase in the supply of money so large that single digit interest rates could not stay ahead of the loss of value from over supply.
Please stop what ever you are doing and make lots more videos. hahahahahahahaha
Thank you so much for being so clear.
sincerely,
Joe
From Mumbai, 05/01/2009
Request you to please do a presentation for Dark Pools, MTF/ECN's and Clearing and Settlements. Thanks
From Barbados, 04/26/2009
Hello, i'm not from the states but i am an avid watcher of the whiteboard videos. Mr. Hirsch, could you do a whiteboard explanation of clearing and settlement? This is a topic which affects the entire financial system but is hardly elaborated on.
From Sao Paulo - Brasil, 04/24/2009
The videos are very helpful and easy understanding.Thanks a lot.
04/21/2009
Thanks for the great videos, keep up the great work.
I however don't understand why the banks wouldn't be happy and jumping at the change to gain back market share from the shadow banking sector, by offering more competitive rates. Wouldn't the regulations imposed on the banks make them safer for consumers. If the banks were the consumers first choice in lending, as the rates COULD effectively be set low enough to make this possible, there wouldn't be a need for shadow banks at all. But I guess the question is how much profit is enough profit for the banks to want this extra business. Maybe dealing in mass volume would allow them to increase their profits by lowering rates below the level offered by other non banking lending institutions.
From Atlanta, GA, 04/20/2009
Please consider an Austrian School versus Keynesian theory video comparing the prominent attributes of each. You could consider County "A" versus County "B" and the central bank policy of each? Thanks.
Bill L
From goose creek, SC, 04/19/2009
none
From santa clara, CA, 04/18/2009
the videos are very helpful and easy understanding , i wish to know if you can put some videos regarding the various usage of chart and understanding of the chart indicators
From Coppell, TX, 04/17/2009
Please add me to he list to receive the videos.
From new york, NY, 04/14/2009
Thank you Paddy Hirsch!
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