Reply To: Another Bank in Crisis?
The IMF has drawn attention to another set of financial intermediaries — the shadow banking system.
Like banks they obtain or borrow money and then lend it out. The only difference is that, unlike banks, they are not allowed to take deposits from individuals or companies.
But nobody claims that they can conjure money out of thin air to lend, even if some of the ways they obtain money are pretty dodgy. Hence the IMF’s concern.
But if they can’t, why can banks? The currency cranks’ claim is full of holes. This is just another one.