In this episode we begin our journey into the world of financial markets. With the guidance of our host, Edward Finley, a seasoned Wall Street investor and sometime Professor at the University of Virginia, we'll unlock the complexities of how capital markets provide vital capital for households, firms, and governments. We will decode the rich tapestry of the US capital market, from the bond market, the equity market, to the often overlooked money market, with its unique short-term debt securities.
What if we told you everyone uses the money market to provide or secure short-term financing? You'll be amazed as Edward unpacks the mysterious world of the Money Market in this episode. We will explore the many uses firms, households and governments make of this very important market, including how the Federal Reserve Bank uses the Money Market to execute monetary policy. But we don't stop there. Edward takes us back to the 1970s to revisit the innovation of Money Market funds, shedding light on how these funds gave average investors a chance to play in the big leagues but introduced unanticipated risks.
Hold on tight as we catapult into one of the most turbulent periods in financial history—the 2008 liquidity crisis. Edward dissects the role that Money Market funds played in events leading up to the crisis, triggered by the dramatic bankruptcy of Lehman Brothers. We'll explore the government's response, from the Treasury's insurance scheme to protect investors to the Securities and Exchange Commission's preventative measures for future crises. The knowledge and insights gained from this episode are sure to leave you with a comprehensive understanding of the money market and its pivotal role in our economy. Don't miss it!
New episodes will always updated regularly
