Tier 3 · AdvancedFree

History of Financial Crises

When It Goes Wrong

8 modules~56 min totalVerifiable certificate on completion

Syllabus

01Leverage, Insolvency, and the Equity CushionMath
8 min
02Maturity Transformation and Bank RunsMath
9 min
03Duration Mismatch and Mark-to-Market LossesMath
9 min
04The Anatomy of a Mania
6 min
05The Silent Run
6 min
06The Chain Reaction
6 min
07The Triple-A Trap
6 min
08Lender of Last Resort
6 min

From Module 1 — read a sample

Leverage ratio = assets ÷ equity. A bank with $100 in assets and $4 of equity has 25× leverage. A 4% drop in asset value wipes out ALL equity — that's why leverage is dangerous.

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