https://youtu.be/Xa7JumPlmNU?si=Syh_aSxNQy5KtdRp <


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https://youtu.be/DhWmSzmuJ0Y?si=u-2sgCsWXpk0qEMx


https://youtu.be/wWY7hYiF4fo?si=DOgRHRPaeZriJtQR


China's shadow banking system. This is 0:38 the bomb of my talks title. A $3 0:41 trillion or by some estimates much 0:43 larger dark doppelganger to our formal 0:46 state-run financial system. It's a world 0:49 of unregulated lending, opaque products, 0:52 and hidden risks. It was, as many in the 0:55 West saw it, China's Lehman Brothers 0:57 moment just waiting to happen. And yet, 1:00 here we are. The bomb, it seems, here we are. The bomb, it seems, has 1:04 failed to explode. China's economy has 1:07 managed to avoid a single systemic 1:09 financial crisis. even as it navigated 1:11 the 1997 Asian financial crisis, the 1:15 2008 global financial crisis and its own 1:18 spectacular property and stock market busts. This is one of the great 1:23 financial puzzles of our time. The West 1:25 sees this shadow system as a bug, a sign 1:28 of a broken, outofc control economy. 1:31 This is a misreading. The shadow banking 1:33 system is not a bug. It is a feature. It 1:36 is not an anomaly. It is a rational 1:40 response. It is the predictable, messy, 1:43 and ingenious workaround to a formal system is not a bug. It is a feature. It 1:36 is not an anomaly. It is a rational 1:40 response. It is the predictable, messy, 1:43 and ingenious workaround to a formal 1:46 financial system that was designed for a 1:48 different purpose. To understand the 1:50 shadow system, you must first understand 1:53 the formal system. It mirrors. China's financial system that was designed for a 1:48 different purpose. To understand the 1:50 shadow system, you must first understand 1:53 the formal system. It mirrors. China's 1:56 formal financial system is, in a word, 1:59 repressed. It is dominated by a handful 2:02 of massive state-owned banks. And for 2:06 decades, the system was not designed to 2:08 serve the economy. It was designed to