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bdt

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He's not advocating new regulations. The point of the article was that the Fed has knowingly allowed the shadow banking system to take over banks role in providing credit without requiring those organizations to bear the regulatory burdens of traditional banks.

The shadow banking system is exactly like the unregulated banks of the 1930s. And as we're now seeing, the result is another financial catastrophe.

http://en.wikipedia.org/wiki/Shadow_banking_system