could this happen again? do we think this could happen again? one financial institution. since there is no lehman brothers. could it bring down the lexicon? i don t want to say never and there will be crisis. nothing we ever did will preclude the economic crisis. the question is will he metastasize or grow from a serious problem beginning in the residential mortgage market and grow into what you described here this morning. what we hope we have done by setting up the federal financial oversight boards and protection bureau and giving the federal reserve much more additional powers and closing down the shadow banking system and including financial institutions beyond the banking sector. these are all major provisions of the bill. none of them have been tested yet. the bureau is, wooing. we hope we have done it well and
as you pointed out, shep. it was not only what federal chairman ben bernanke said about the tapering of the easy money and monetary policy that spurred the rally and what is happening in china. it is the world s second largest economy. it is a fact and this sounds familiar for all of us in the united states, they have a shadow banking system there. just thinks of trillions of dollars of loans, that are shams built on a foundation of lies. the central bank has essentially created a liquidity crunch. it is hard to borrow money in china and that has investors worried about keeping growth in china is difficult. that s the reason you saw the selloff here in the united states. we reported on the volatileitty. it was the 10th day in the past month in which the dow moved
years in june. up 8 points. that areasonable doubt going to the national association of home builders and wells fargo. but analysts say investors continue to be on edge concerned that the federal reserve might soon scale back its efforts to keep interest rates at a record low. central bank officials are set to meet tomorrow for two days in jackson hole, wyoming. investors are jittery in china as well. according to credit ratings agency fitch. china s growing credit bubble is unlike anything in modern world history. and it s only a matter of time before it bursts. analysts there say china s shadow banking system is out of control and under increasing pressure. borrowers continue to mount more and more debt in an interview with the daily tell graph, here is what one analyst said, quote: china s credit griffin growth model is clearly falling apart. this could feed into a massive overcapacity problem and potentially into a japanese style deflation. overall credit in china has jumped from $
i m courtney reagan with your cnbc market wrap. for a third straight week all three major indexes posted gains. dow climbing 35 points today. the s&p up 7. the nasdaq gaining 27 points. the fed is broadening its oversight now keeping an eye on more than just banks. ben bernanke said earlier the so-called shadow banking system is under the lens along with asset markets. and gap was a big winner for the s&p 500 thanks to a surge in sal sales at its old navy chain. that s it from cnbc. we re first in business worldwide. for now, back to hardball. welcome back to hardball. just a few days after the discovery of three women in ariel castro s cleveland home, the final victim, michelle night, released from the
dimon would have us all believe his $2 billion trading loss was just a stupid mistake. you know, things happen. but our next guest agrees that this is just the latest indication that the as yet unreformed shadow banking system revealed the covered-up and funded with more than $30 trillion in 2008 has simply been covered up and perpetuated by the current administration. giant banks that were levered 40, 50, 60, even $100 million they had before the financial crisis, well, they re bigger than they ve ever been, and for the past three years, those jp morgan bankers were collecting big bonuses on the very system that then blew up. but were there crawl backs for them? goodness, no. henry, i love wall street because you pay yourself first