clock menu more-arrow no yes

Filed under:

Morning Mortgage Meltdown: Sinister "Shadow Markets"

Regulators, with pitchforks and torches at the ready, are threatening to crack down on the $10 trillion "shadow market" that was responsible for the subprime mortgage crisis. MarketWatch joins the fray with an encyclopedic rundown of traditional banking vs. the ominously dubbed "shadow system." Press panic button now: "Unless radical changes are made to bring this shadow network under an updated regulatory umbrella, the current crisis may be just a gust compared to the storm that would follow a collapse of the global financial system." [Market Watch]