Economist Paul Krugman and U.S. Treasury Secretary Timothy Geithner explain the credit crisis via the implosion of the shadow banking system, which had grown to nearly equal the importance of the traditional commercial banking sector as described above. Without the ability to obtain investor funds in exchange for most types of mortgage-backed securities or asset-backed commercial paper, investment banks and other entities in the shadow banking system could not provide funds to mortgage firms and other corporations. COUNT 4
QSN1 Economist Paul Krugman explained the credit crisis via the implosion of which system? ANS1 shadow banking system QSN2 What is the system with nearly equal the importance of traditional commercial banking? ANS2 shadow banking system QSN3 The shadow banking system could not provide funds to mortgage firms and other corporations without the ability to obtain which funds? ANS3 investor funds QSN4 What was Timothy Geithner's position during the fall of 2008? ANS4 U.S. Treasury Secretary