Before 2008 a real, real estate market did not exist. Americans are not dumb, but due to misleading information about the real estate market they made predictably bad mortgage decisions. Banks and only banks control/led leverage in two ways. The first took place during loan origination, requiring a down payment or no down payment; 20% […]
The picture is a diagram of the US Shadow Banking System produced by the New York Fed in 2009/10. It is important to note, a handful of the largest, most sophisticated American banks, largely in the Federal Reserve district east of the Hudson created and inflated the Shadow Banking system. Layers two and three contained […]