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 [2] market.

Until we can answer these questions we should conclude that risk is mispriced and price discovery for global financial markets is obscured! more>



One response to “Shadow Banking Stealth Mutation

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s