How the Shadow Banking System Fueled the Great Recession
Acton Institute Powerblog

How the Shadow Banking System Fueled the Great Recession

Almost a decade has passed since the start of the Great Recession of 2008 and yet many of us are still confused about what caused the financial crisis. We know financial intermediaries like Lehman Brothers played a part, though we’re often unclear on the details.

In this video, economist Tyler Cowen explains the role of the “shadow banking” system and how the incentives led to them to take on too much risk and leverage.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).