"money that banks owe to each other is more a reflection of the structure of the financial system than of the degree of overborrowing more broadly."
that structure changed radically in the last 30 years
What would a consolidated hi fi sector look like ?
Yes hi fi structure is not so much aBout burden as about fragility
an added elaboration of it's circuitry makes it more prone to cascading
Notice however it's hugely greater share of a hugely greater total corporate net earnings
Share
What up with dat ?
What was it doing to earn that ?
Production corporations give away extracted surplus
only where absolutely necessary
Once again the cloud above the production platform
Reflects as much the size of the asset system ie itself
As the size of the production system with it's attendant and surrounding
distribution and market systems
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more p-kackle
"compare two banking systems, one in which banks directly lend deposits out to customers, another in which many deposits are lent out through the interbank wholesale market, and then lent on to nonfinancial customers."
" The second system will show much higher financial-sector debt, and it is in some real sense more risky than the first "
that sez it so far as i can tell about real economy burdens
but what of the hi fi cloud itself
what if its creating credit within itself for highly leveraged securities purchases
the hi fio system can make itself not just risky but capable of an implosion
all by itself if underlying asset values convulse
" the real economy isn’t more highly indebted than in the first case.financial-sector debt is about the internal organization of intermediation, and it’s not the same kind of thing as when households or business run up a lot of debt""
but big deal professor P kettle
the hell fire from a hi fi panic ala fall 08
leaves a hi fi sector open to gashes like that cruise ship suffered
enter the giant fed bailors
