Liquidity Illusion: Systemic Risk, Securitization, and the Shadow Banking Leverage. Quantitative Analysis (1Q-2025)
This comprehensive analysis examines the paradoxical relationship between apparent market liquidity and underlying systemic risk in the U.S. financial system as of Q1 2025. Through quantitative examination of SOFR funding markets, securitisation trends, and off-balance sheet exposures, we demonstrate how…
Structural Fragility of the U.S. Financial System
The United States’ financial system exhibits profound structural idiosyncratic disequilibria that challenge ordinary assessments of economic stability. Through a comprehensive analysis of Federal Reserve data, w critical liquidity mismatch can be observed and derived between assets and liabilities across all…
Understanding Stock Splits: Their Mechanics and the risks to Financial Stability and the Economy
Stock splits are a common corporate action wherein a company increases the number of its shares while proportionally reducing the stock price. The company’s market capitalization remains unchanged, but shareholders end up with more shares. For example, in a 2-for-1 stock split, every existing share is divided into two, and shareholders receive an additional share for each one they hold, while the price per share is halved.
United States Household Debt Balance breaks another record, setting American Households $17.8 Trillion in the red, while Credit Card delinquency rates are on the rise
Total consumer debt in the United States has reached an unprecedented level, with American households now owing a staggering $17.8 trillion. This record-breaking amount underscores the growing financial strain on many families, as they grapple with mortgages, credit card balances,…
Financial Derivatives and Their Risks for Financial and Economic Stability
Financial derivatives have revolutionized modern finance by providing tools for risk management, speculation, and investment. However, their widespread use also brings significant risks to financial and economic stability. This essay delves into the complex world of financial derivatives, exploring their…
