Why Shadow Banking Didn't Cause the Financial Crisis
Michel, Norbert J.
Most American adults easily recognize the following description of the 2008 financial crisis. Unregulated Wall Street firms (so-called shadow banks) made too many risky bets with derivatives, causing the housing bubble to burst. The contagious run through the financial system was only arrested by bailouts from the federal government and major regulatory changes. But what if the record demonstrates that the core of this story is misleading and ...