First of all, let’s try to understand a bit more what is Shadow Banking: http://www.investopedia.com/terms/s/shadow-banking-system.asp Definition of ‘Shadow Banking System’ The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated […]
http://www.economicprinciples.org/ well, spare a little bit of your time (30 minutes) to watch Ray`s video. Always refreshing and instructive. I wish he could have extended his thoughts on currencies and long term interest rates but…. he is right in saying that “how the economic machine works”is a pretty simple process.