How shadow banks threaten the global economy

 The constant flow of easy money out of central banks has fed serial crises for decades.

Shadow banks manage $63tn in financial assets — up from $30tn a decade ago.

The even bigger risk is that an accident in the markets settles the debate over how hard Fed tightening will hit the real economy.

 Ruchir Sharma FT 23 May 2022 

https://www.ft.com/content/d22ec352-a4a4-4f4c-832a-cb05af5110f1

The world is in a debt trap

No matter what happens to near-term inflation and growth, the world is too indebted for rates to rise much higher.

Ruchir Sharma FT 22 November 2021

https://englundmacro.blogspot.com/2021/11/the-world-is-in-debt-trap.html

These structural changes in the way finance works may mean that markets are more prone to bouts of erratic trading and nervous breakdowns.

The Economst editorial 11 May 2022

https://englundmacro.blogspot.com/2022/05/one-question-is-whether-market-slump.html

The shadow banking system and The Volcker Rule

https://www.internetional.se/billgrossoctober1.htm