This is the underlying justification for why it "feel right" when people draw analogies for the current financial situations to the 2008 housing crisis. Please read if you're unfamiliar!
Reposted from
Nathan Tankus
Yes, its the question of the Shadow bank/money run hence important to return to this piece on Pozsar.
www.crisesnotes.com/the-night-th...
www.crisesnotes.com/the-night-th...
Comments
While he did seek a state-controlled economy, T is too maligned to hold such philosophy... /1
It's imperative to be able to separate the EOs and identify which of the two it serves.