Edited extracts from Chris Martenson's talk with Lauren Lyster at Capital Account (Jun 26, 2012).
Chris Martenson, Author
The Crash Course: The Unsustainable Future Of Our Economy, Energy, And Environmen. [ Ссылка ]
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Uploaded on Jun 26, 2012
Related Working Papers:
"Retail Sweep Programs and Bank Reserves, 1994--1999"
Richard G. Anderson and Robert H. Rasche (Working Paper 2000-023A)
Federal Reserve Bank of St. Louis, (2001, pp. 51-72)
[ Ссылка ]
"Since January 1994, the Federal Reserve Board has permitted depository institutions in the United States to implement so-called retail sweep programs. The essence of these programs is computer software that dynamically reclassifies customer deposits between transaction accounts, which are subject to statutory reserve requirement ratios as high as 10 percent, and money market deposit accounts, which have a zero ratio."
"Through the use of such software, hundreds of banks have sharply reduced the amount of their required reserves. In some cases, this new level of required reserves is less than the amount that the bank requires for its ordinary, day-to-day business. In the terminology introduced by Anderson and Rasche (1996b), such deposit-sweeping activity has allowed these banks to become "economically nonbound," and has reduced to zero the economic burden ("tax") due to statutory reserve requirements."
"Shadow Banking"
Zoltan Pozsar, Tobias Adrian, Adam Ashcraft, and Hayley Boesk
Federal Reserve Bank of New York Staff Reports (Jul 2010)
[ Ссылка ]
"The rapid growth of the market-based financial system since the mid-1980s changed the nature of financial intermediation. Within the market-based financial system, "shadow banks" have served a critical role. Shadow banks are financial intermediaries that con- duct maturity, credit, and liquidity transformation without explicit access to central bank liquidity or public sector credit guarantees."
"Examples of shadow banks include finance companies, asset-backed commercial paper (ABCP) conduits, structured investment vehicles (SIVs), credit hedge funds, money market mutual funds, securities lenders, limited-purpose finance companies (LPFCs), and the government-sponsored enterprises (GSEs)..."
