Finance & Fury Podcast

Welcome to Finance and Fury snuck this episode in ahead of time – only reading about news yesterday – need to do some further digging – but is it Time to sell shares in anticipation of a crash? Today – run through some news that you might not have seen – financial troubles of DB, but also China’s bank runs   First - A lot of elements to it – financial crashes are never due to just one event – chain of events – think of it as an avalanche – snow builds up – eventually, there is too much – large vibration (sound, contact) = slow rumble at first, but as it takes off and wipes out most of what is in its path – Share market crash is similar is there is often a run-up in value – if it has come from debt, derivatives, expansion of money supply, further driving irrational exuberance – Then there is an event that requires a contraction in the money supply – i.e. how much is invested versus how much debt is owed on it How connected they are is also a factor - Banks Largest shareholders are other banks or financial in