On Monday, I discussed the major bubble crisis in China. I’ve mentioned the term Shadow Banking. This new banking term caught my attention – is shadow banking legal? What is Shadow Banking anyways? And most importantly, how can Shadow Banking affect your portfolio?
With a name like this, it’s hard to think shadow banking is good for the economy. From my understanding, shadow banking is like steroids; it boosts your performance and exacts a toll to pay later at a critical price for your excesses.