I just jumped on this one in particular, because it's a bit of financial newspeak that's starting to annoy me. Arbitrage arguably has a legitimate function, so "regulator arbitrage" looks a lot like a newspeak term designed to conflate flying the flag of convenience with legitimate arbitrage.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
Avoiding the rules is pretty damn close to breaking the law. Maybe the solution would simply be to reverse the burden of proof on whether that's the case... In the long run, we're all dead. John Maynard Keynes
I think it's easier for talking heads at places like CNN & CNBC to understand and explain to viewers.
Voodoo banking or zombie banking is probably even more accurate than shadow banking.
