Complex sentence: When these losses appear the assets of banks will receive losses that will result in a swift reduction in the value of financial assets, then an ensuing banking crisis and without bailouts "money substitutes" will shrink.
Split into simpler sentences: When these losses appear, the assets of banks will receive losses that will result in a swift reduction in the value of financial assets. An ensuing banking crisis occurs and without bailouts "money substitutes" will shrink.