Identifying the Building Blocks of the Next Financial Crisis

The video discusses the tightness of credit spreads similar to pre-financial crisis levels, highlighting concerns about corporate debt and interest rate risks. It examines the precarious fiscal posture of the US government and potential political crises due to rising interest costs. The discussion also covers the stability of banks, the shadow banking system, and the looming US deficit, emphasizing the risk of a dollar crisis affecting the global economy.

Discuss the risks associated with the shadow banking system as mentioned in the text.

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What are the potential consequences of a deficit equal to 7 to 8% of GDP?

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