Understanding the Banking Crisis (Part 1): “Too Big to Fail”

Ed McCartin, a former governor of the Chicago Mercantile Exchange, shares his experience of the financial services industry. This series of short lectures examines credit risks in the growing derivatives markets, mortgage-backed securities, how the Feds reluctance to regulate US banks and zero interest rate policy affects working Americans.

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9 Responses to “Understanding the Banking Crisis (Part 1): “Too Big to Fail””

  1. squirreljester2 says:

    The thing with credit risk that I don’t understand, who do you owe money to credit wise, when everyone, in the end, owes everyone money to everyone else? If I owe you a million, and you owe me a million, that’s a total “credit risk” of 2 million, but why do we have to actually “pay” each other, ever? And wouldn’t that “credit risk” be null at that point?

  2. mbirmingg says:

    Ed I am a part time economics teacher at a college and these presentations are excellant. “If every artist is a theif” teachers merely parrots. Primarly I’m taking your slides from the FRED database and some of your examples. In the spirit of the material, I take it you won’t mind. Keep up the good work. Residual credit risk and market concentration in banking are problems for all, left and right. I’m not a fan of IOER either (interest on excess reserves) peace

  3. ScorpiusIncorruptus says:

    Assets means loans means the ability to issue loans, whether of “value” or not.

  4. MrBoogerRed says:

    LMAO… after they adjusted the light so you could see his face, all I could think was:


  5. bull864 says:

    The Government is just as much to blame as big banks. Don’t understand why people won’t admit it.

  6. juan3l3 says:

    In fact is really well explained, even for the non english spoken people. Just enhance a bit the slides to get a more graphic idea and will be perfect!

  7. downturnabbie says:

    Google “The Banks Have Stolen Christmas” for the best new festive song of 2011 – the true spirit of this year’s Christmas. Serious fun!

  8. UVStudio says:

    You are an example of why nobody can make an informed decision and yet feels that they have an opinion.

  9. xthisangelfellx says:

    boring. boring. boring. i’d watch this video, but i can’t stay awake.

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