Shadow Banking – Federal Reserve Bank of New York Staff Report no. 458 July 2010

via Wikipedia Shadow Banking System Shadow banking institutions are typically intermediaries between investors and borrowers. For example, an institutional investor like a pension fund may be willing to lend money, while a corporation may be searching for funds to borrow. The shadow banking institution will channel funds from the investor(s) to the corporation, profiting either … Read more

NY TIMES – Deadbeats??? Biggest Defaulters on Mortgages Are the Rich

“Two years ago when the first waves of defaulting mortgages started occurring I saw a lot of ‘moral hazard’ references in comment sections. The less well to do and financially unsophisticated were scorned for being so foolish as to take on debt they should have known they couldn’t handle. So where’s that moral hazard now. … Read more