Finance and Investment

Alright, let's talk about the Dodd-Frank Act. You can think of it as a "super patch package" created by the U.S. government after the 2008 financial crisis that nearly brought down the global economy.

Alright, no problem. Imagine you and I are sitting in a coffee shop, and I'm going to walk you through what the "Basel Accords" are all about, and how they've evolved step by step, overcoming challeng...

Okay, let's talk about the role of the "lender of last resort." Imagine the entire financial system as a vast water system, with money being the water.

Yes, absolutely, and the impact is quite substantial. This isn't like a stock market crash that you feel in a single day; it's more akin to the "boiling frog" analogy, slowly but profoundly altering t...

Can Climate Change or Natural Disasters Trigger a New Type of Financial Crisis? The answer is: Absolutely possible. And this is no longer the plot of a science fiction novel; central banks and financi...

Hey, the topic of "shadow banking" is actually quite interesting to discuss. It's easier to understand if you think of it as the financial world's "unofficial experts" or "guerrilla forces.

Alright, let's talk about "Too Big To Fail." Imagine you're playing with a giant block tower, and some of the blocks are huge and heavy, deeply embedded at the base of the tower.

Yes, absolutely, and it's almost inevitable. Loopholes in accounting standards are fertile ground for laying the groundwork for financial crises.

That's an excellent question. Many people find rating agencies quite mysterious. Before financial crises (like the one in 2008), they weren't mere bystanders; they were deeply involved, playing severa...

Hello! Let's discuss this in simple terms. Imagine you and your friends are playing a game where you build houses with building blocks. Normal Market: Building Brick by Brick Normally, you have a limi...

Okay, let's talk about this topic. Imagine the old stock trading floors, where people in red vests crowded together, shouting into phones to buy and sell stocks.

好的，没问题。想象一下我们来聊聊这个话题。 How Does Globalization Accelerate the Spread of Financial Crises? You can imagine globalization as a vast, interconnected transportation network, linking every "city" (country) ...

Okay, let's talk about this topic. Financial innovation is like a very sharp Swiss Army knife. Used well, it can help you solve many problems; used poorly, it can hurt you badly.

Okay, let's talk about this. You can think of interest rates as the "price" of money in the entire economic system. Central banks (like the People's Bank of China in our country, or the Federal Reserv...

Okay, regarding the impact of Brexit on global financial stability, let me try to explain it to you in plain language. You can imagine the global financial market as a super precise, interconnected gi...

That's a great question. You can think of these two crises as two brothers, distinct in appearance but very similar in bloodline and temperament. Both offered profound lessons.

Alright, let's talk about the South Sea Bubble. While it's an old story from 300 years ago in Britain, the pitfalls within it are still being encountered today.

Hi there, the term "moral hazard" isn't as mysterious as it sounds. I'll explain it in simple terms, and you'll get it. What is "Moral Hazard"? Imagine you bought a "full coverage" insurance policy fo...

You can imagine the entire financial system as an incredibly complex Jenga tower built with blocks. What is the meaning of "systemic risk"? When playing Jenga, if you pull out one block, the tower usu...

Let me put it this way: you can imagine the entire economy as a human body, and the banking system is its "cardiovascular system," responsible for delivering money (the "blood") to all the places that...