”…Regulators have largely passed the buck to the shadow banking system. Rather than making regulations that ensure the safety and soundness of financial institutions, and safeguard the stability of the financial system, the riskiest activities are pushed away, out of sight, into the shadows.
But shooing these monsters off into the shadows doesn’t kill them. The shadow banking system rivals the regulated banking system in size and overwhelms it with risk. The regulatory net has big holes in it and enough has already slipped through. We already have a great recession. We are reminded that it could have been worse. So why are waiting for shadow banking monsters to devour the economy— and your job, your savings, your community — again?” ”
http://www.alternet.org/economy/looming-threat-could-initiate-next-economic-collapse?paging=off