Shriveling Shadow Banking Limits Liquidity and Damages the Economy

The Center for Financial Stability (CFS) Divisia monetary aggregates and components often reveal nuances surrounding future moves in the economy and markets as well as a real time perspective of the US financial system. The November release is no exception.

– “Market finance” (or what some like to call “shadow banking”) is shriveling to the detriment of the economy and financial market liquidity.

– Access to market finance has shriveled by 45% in real terms since 2008 – the largest cyclical drop in the last 40 years.

For Shriveling Shadow Banking Limits Liquidity and Damages the Economy:
http://www.CenterforFinancialStability.org/amfm/AMFM_111914.pdf

For October Divisia Monetary and Financial Data Release Report:
http://www.centerforfinancialstability.org/amfm/Divisia_Oct14.pdf

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