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The article states: >"Leverage has shifted to companies from consumers, and some risk has migrated to shadow banks from traditional lenders." Can someone expl
by bogomipz 8y ago
The article states:
>"Leverage has shifted to companies from consumers, and some risk has migrated to shadow banks from traditional lenders."
Can someone explain this statement to me. The banks were the one's that were too heavily leveraged before. This is why the required the bailout. What am I missing?
- sschueller 8y agoWhat are shadow banks? Sounds to me the risk was just moved off the books using some financial trickery into "shadow banks" and when those blow they take the regular banks with them.
- airstrike 8y agoShadow banks were already a thing in 2007-2008 https://www.philadelphiafed.org/-/media/research-and-data/publications/business-review/2014/q2/brQ214_shadow_banking.pdf https://www.philadelphiafed.org/-/media/research-and-data/pu...