Why The Real Shadow Banking Risks Are In The US And Europe, Not Just China

Why The Real Shadow Banking Risks Are In The US And Europe, Not Just China by Dan Steinbock, Difference Group Dan Steinbock says the world’s shadow banking has returned to the high levels of the 2008-9 global crisis. While international concerns focus on China’s shadow banking, new data shows that the largest risks are by far in the United States, Europe, the UK and Japan. In August, the Financial Times reported that 11 Chinese shadow banks had written an open letter to the top party official in Hebei province asking for a bailout. Soon afterwards, Foreign Policy magazine ran a…