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Let's start with an example.

The picture below represents the subprimes chain. It should be read from left to right. It shows how credits issued by banks are first transformed into securities (ABS Assets Based Securities  and MBS Mortgage Based Securities) that are further assembled and transformed into obligations (CDO Collateralized Debt Obligations), that are then sold to investors.

This may look complex, but it is not. Surprisingly enough, a few basic notions allow the easy understanding of  this picture.

The subprime chain is particularly interesting from a learning point of view as it shows how different worlds connect together: the micro-world of bank credit is linked to the macro-world of markets.

To put it differently, the recycling of world savings into the banking system allows more credits to be distributed by banks to the economy..  This is where the notion of funds, hedge funds and investment banks appears, as a kind of go-betweens between banks and markets.

The good news are that no more than one hour is needed to understand the logics of the subprimes chain,. No specific knowledge is required. It is thus particularly motivating  for non-finance people to be able to break the wall  of the finance world and its alleged complexity.   

How to negotiate bank credits

FUNDS, leverage tools 

Austerity,

 supply vs demand policy

Negative interest rates,
quantitative easing

 Subprimes,

shadow banking

The strenghts of euro,

eurobonds