Tuesday, March 31, 2009

Bank of Canada Governor: "shadow banking system"

In this article the Governor of the Bank of Canada uses some pretty interesting language.
Interesting in that it could be demonized as conspiratorial, except it is actually accurate and truthful.
It seems as if there are two seperate banking systems one for the common folk.
The other one for high rollers and wheelers and dealers who can gamble other peoples hard earned pensions away through hedge funds and structured investment vehicles.
Yet, this "shadow banking system" is responsible for this economic mess the entire world is in.

Carney blamed much of the financial crisis on the growth of a "shadow banking system" -- including investment banks, mortgage brokers, finance companies, hedge funds, structured investment vehicles and the like.

When liquidity collapsed in August 2007, it brought the system down too.

"The shadow banking system was not supported, regulated or monitored in the same fashion as the banking system. With hindsight, the shift towards the shadow banking system that emerged in other countries was allowed to go too far, too long," Carney said.

2 comments:

  1. I've decided that the entire system is one great big scam.

    I'm looking for my slice of land so I can get the heck out of this bloody rat race.

    I'm fed up.

    ~ buffy

    ReplyDelete
  2. well it is a scam, it really is.

    ReplyDelete

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