In April I chronicled former NYSE Chairman Dick Grasso's stark criticism of so-called "dark pools", shadow sources of liquidity that manipulate markets to the detriment of the individual investor (and, due to their negative influence on the economy, to the detriment of the public at large). Today ZeroHedge published a terrific article regarding shadow banking, a nebulous, intricate, delicate system that, believe it or not, has grown to dwarf the traditional banking system. In the article, the author makes the case that the financial system is distancing itself from shadow banking, which might sound like a good thing. There's just one problem: in increasingly centrally-controlled America, the Fed has come to rely on the shadow system to mitigate inflationary effects of money printing. So, with the decrease of shadow banking comes an increase in inflation. See the dangers of all of this artificial, centrally-controlled mumbo jumbo?
Excellent, Excellent Article: On The Verge Of A Historic Inversion In Shadow Banking
ECOMINOES FLASHBACK: (Reformed?) Crony Capitalist Outspoken About Government, Market
In Obama news:
The Obamacare Outcome Matrix
Obama Caught Fibbing About His Record On Regulations
ECOMINOES FLASHBACK: Washington On The Back Of Small Business
Can Obama Rewrite Federal Law?
ECOMINOES FLASHBACK: Obama The Dictator: A Timeline
In other news:
Your Tax Dollars At Play: Small-Town Cops Pile Up On Useless Military Gear
California Dreaming: Stockton To Take Up Bankruptcy Plan
ECOMINOES FLASHBACK: California: The GDP, Budgetary Woes, And Resistance To Austerity Of A PIIGS Nation
They Suck Up To The Leading Candidate: Romney The New Darling of Silicon Valley
Texas Power Grid Strained To Limit, Sets Records
ECOMINOES FLASHBACK: America's Crumbling Infrastructure
Can You Afford To Die In America? An Infographic
Facebook Tell-All? Ex-Employee Reveals Inside Culture In New Book
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