Shadow Banking Stealth Mutation
By Gordon T Long – The Shadow Banking System is almost completely unregulated.
How can a $72 Trillion banking function which is larger than the highly regulated Banking System go unregulated?
How can a $700 Trillion OTC, Off-Balance Sheet, Off-Shore, Unregulated SWAPS market go unregulated?
The global GDP [2, 3, 4, 5, 6] is smaller than the Shadow Banking System and less than 10% of the SWAPS  market.
Until we can answer these questions we should conclude that risk is mispriced and price discovery for global financial markets is obscured! more> http://tinyurl.com/kj9wa99
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