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Shadow banking

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Uploaded by on Apr 13, 2009

The shadow banking system is a key component of the U.S. economy, but the financial crisis has frozen it solid. Senior Editor Paddy Hirsch explains what shadow banking is and why it's important enough to warrant its own bailout, called the Term Asset-Backed Securities Loan Facility, or TALF.

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Education

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Top Comments

  • Paddy is the man!

  • Thanks a lot market place videos! I really appreciate these videos!

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All Comments (73)

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  • Awwww no ninjas </3. XD. Seriously this is amazing.

  • @tavit8 Yes, it is called Fractional Reserve Lending. Typically required "reserves" (savings deposits, etc) are around 3% (during "normal" times). Think about that. In essence, it means the banking system generates one helluva lot of inflation via their loan creation system. But I sense you already know all this tavit. This is more for those not "in the know".

  • How does this guys know so much?!? I am impressed with how he explains things.

  • ye its a good video..worth to watch.

  • u speak Latin

  • Don't the commercial banks create the money they lend (instead of using actual deposits)?

  • YOU LOOK LIKE ROBERT DENIRO!

  • @rigoletto68 cite you source.

  • House prices will continue to fall for years. I read in June, 2011 the FHA was still giving almost zero down loans ...at the same time millions of people are not paying their mortgages anymore since banks are not foreclosing. There is no end in sight to real estates free fall at this point until the system starts to correct and that has barely begun.

    Paddy should have a weekly PBS show. People would definitely watch it.

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