【每日阅读训练第四期——速度越障22系列】【22-04】经管 Shadow Banking

goldenpath

02:04  The growth if shadow banking system, a collection of non-traditional banking institution that provides the traditional bank function of credit growth, is getting out of control and government and the central bank were not prepared nor have the tools/regulations to control such thing.

03:36 talked about the collapse of Bear Sterns and Lehman Brothers, government was willing to lend a hand but soon realized that the the extension of credit was inadequate so government appointed some other financial institutions to take over the falling companies.

02:24 the fall of Lehman Brothers triggered a domino effect and quickly affected the whole economy. Author believes that the cause of such devastated crisis like what happened in 2008 was the lack of regulations. The banking laws that were used  were drafted long time ago and simply could not keep up with the rapidly evolved financial systems. At the end, author believed that while an accurate prediction when the next financial crisis will happen is unrealistic, it is important for the regulatory and law to be updated so they can keep situation under control when things getting crazy again.

02:02  talked about how the bank run- the heart attack that can quickly kill a bank-works and and some the suggestions on what can be done to prevent this from happening.

01:44  various of suggestions on how to prevent the 'bank run' were discussed.