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Democratizing the Financial Markets - ATTAC: LINK ¤ ATTAC

 

• "the financial crisis of the USA - should be seen in a larger context !!!!!!!!!!!!"

 

 

 

 

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• "market radicalism fails on all economic and social planes - not only on the plane of the financial markets !!!!!!"

 

 

 

 

 

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• "markets need rules - financial markets need rules !!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "to avoid crises - and safeguard the interests of the general public !!!!!!!!!!!!"

 

 

 

 

 

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• "bailout measures must be coupled to a system change - without inefficient and hardly regulated financial markets !!!!!!"

 

 

 

 

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• "to democratic and effectively regulated - financial markets !!!!!!!!!!!!"

 

 

 

 

 

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• "speculation must be muffled - therefore far-reaching reforms must be carried out !!!!!!!!!"

 

 

 

 

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• "for example, strengthening international cooperation - and regulating actors, and products !!!!!!!!!!!!"

 

 

 

 

 

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• "combined with measures to protect the environment, especially the atmosphere - social spending, and education !!!!!!!!!!!!"

 

 

 

 

 

 

 

the causal Agents should bear a high Share of the Costs:

 

• "there are different possibilities - of getting the financial market actors - to pay !!!!!!!!!"

 

 

 

 

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• "capital income - should be subject to a high uniform, and progressive taxation !!!!!!!!!!!!"

 

 

 

 

 

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• "special tax on assets - to finance measures !!!!!!!!!"

 

 

 

 

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• "public funds should be used - for investment programs !!!!!!!!!!!!"

 

 

 

 

 

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• "and raising the top tax rate for the top 1% - of the top earners !!!!!!!!!!!!"

 

 

 

 

 

 

 

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global Financial Market Monitoring:

 

• "for the actors on the financial markets - there should be adequate international reporting duty !!!!!!!!!"

 

 

 

 

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• "national audits - are not enough !!!!!!"

 

 

 

 

 

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• "there should be a global - financial market monitoring authority !!!!!!!!!!!!"

 

 

 

 

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• "for controlling actors - and products !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

Regulation of Investment Funds:

 

• "hedge funds usually accepted enormous credits - to strengthen their "leverage"  !"

 

 

 

 

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• "with only marginal investment - of their own capital !"

 

 

 

 

 

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• "when the speculations goes wrong - several banks are involved !"

 

 

 

 

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• "thus hedge funds represent a considerable - stability risk !!!!!!"

 

 

 

 

 

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• "the classic speculative business activity of hedge funds - should be strictly regulated !!!!!!!!!!!!"

 

 

 

 

 

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• "private-equity funds gained shares of businesses with the capital of investors - and often with credit, "levers"  !"

 

 

 

 

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• "often, the private-equity company carried out measures - for increased short-term profitability !"

 

 

 

 

 

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• "and drew money out of the firm - in the form of "re-capitalizations"  !"

 

 

 

 

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• "after a few years, the private-equity company - alighted from the enterprise !"

 

 

 

 

 

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• "investment funds often settled in tax havens - and conducted their speculative businesses from there !"

 

 

 

 

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• "global funds can be regulated effectively - on the international plane !!!!!!!!!!!!"

 

 

 

 

 

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• "strict internationally-standardized regulation - of hedge- and private-equity funds !!!!!!!!!!!!"

 

 

 

 

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• "with democratic controls - regulations on internal capital holdings - and taxation on profits !!!!!!!!!!!!"

 

 

 

 

 

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• "legal disclosure of ownership structures - origin of funds !!!!!!!!!!!!"

 

 

 

 

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• "investment focal points - risk-management models - profits - risks as well as the incentive-structure of management !!!!!!!!!"

 

 

 

 

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• "and liability - for misleading information !!!!!!!!!!!!"

 

 

 

 

 

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• "risky investment strategies like short-selling, OTC-businesses - should be prohibited !!!!!!!!!"

 

 

 

 

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• "strict capital requirements should be in effect to banks - for grants to investment funds !!!!!!!!!"

 

 

 

 

 

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• "funds licensed in tax havens - should be denied access to the market !!!!!!!!!"

 

 

 

 

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• "realized profits of funds must be subject - to the investment tax !!!!!!!!!"

 

 

 

 

 

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• "and financial promotion of small- and medium-sized businesses - by strengthening classical financing sources is sensible !!!!!!!!!!!!"

 

 

 

 

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• "technology promotion, like renewable energy - should flow directly to innovative businesses !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

Regulation of Derivatives:

 

• "derivatives are securities - whose price depends on the value of an "underlying" asset !"

 

 

 

 

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• "for example, stock index - raw materials - horse race !"

 

 

 

 

 

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• "derivatives in reality mainly serve - speculation !"

 

 

 

 

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• "by means of derivatives - speculators bet on future price changes !"

 

 

 

 

 

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• "derivatives very strongly contributed - to the financial crisis of the USA !"

 

 

 

 

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• "most of these derivatives have no additional real-economic benefit - they only serve speculation !"

 

 

 

 

 

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• "in some cases, neither traders nor investors - understood the products !"

 

 

 

 

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• "therefore current and new derivatives coming on the market - should be scrutinized !!!!!!!!!!!!"

 

 

 

 

 

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• "and if necessary prohibited or not allowed - by a public authority !!!!!!!!!!!!"

 

 

 

 

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• "the majority of derivatives were traded "over the counter", OTC - not in the framework of stock exchanges !"

 

 

 

 

 

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• "two business partners agreed bilaterally on a deal - without this being publically intended or controlled !"

 

 

 

 

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• "this hides considerable stability risks - and therefore should be prohibited !!!!!!!!!!!!"

 

 

 

 

 

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• "therefore there should be - a registration of derivatives !!!!!!!!!!!!"

 

 

 

 

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• "and there should be a taxation of trade with derivatives - for example, through a general financial transactions tax !!!!!!!!!"

 

 

 

 

 

 

 

 

Closing of Tax Havens:

 

• "tax havens were also - regulatory havens !"

 

 

 

 

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• "there units were subject to the regulations of tax havens - and not to the laws of the land where the business activity took place !"

 

 

 

 

 

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• "banks and investors established "shadow banking" - in tax havens !"

 

 

 

 

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• "and transfered risks from balance sheets - and eluded internal capital regulations !"

 

 

 

 

 

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• "therefore tax havens - should be closed !!!!!!!!!!!!"

 

 

 

 

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• "closing tax havens is a question - of political will !!!!!!!!!!!!"

 

 

 

 

 

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• "most tax havens are protectorates - and can be shut down through political pressure !!!!!!"

 

 

 

 

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• "with non-cooperation of the tax havens - the turnover of capital in and from these countries can be restricted !!!!!!"

 

 

 

 

 

• "licenses could be withdrawn from corporations and banks - that maintain mailbox branch offices in tax havens !!!!!!!!!"

 

 

 

 

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• "economic sanctions against tax havens - and stronger prosecution of tax evasion !!!!!!!!!!!!"

 

 

 

 

 

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• "and an automatic global information exchange - between tax havens and countries of origin !!!!!!!!!!!!"

 

 

 

 

 

 

 

general Financial Transactions Tax:

 

• "short-term speculation on financial markets - lead to volatility, uncertainty and instability !!!!!!"

 

 

 

 

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• "implied higher insurance costs - and set false incentives in business policy !!!!!!"

 

 

 

 

 

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• "short-term price fluctuations of exchange rates - raw material prices - stock prices - and long-term deviations from real-economic prices !"

 

 

 

 

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• "lead to inefficiency !!!!!!"

 

 

 

 

 

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• ""herd conduct" determined the conduct of investors - as fundamental economic data !"

 

 

 

 

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• "there were financial investments - instead of real investments !"

 

 

 

 

 

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• "one kind of speculation was called - "arbitrage"  !"

 

 

 

 

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• "in this business, sums were moved in short time periods - from one investment firm, to another !"

 

 

 

 

 

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• "and slight price changes were exploited - for example, different prices for products on different stock exchanges !"

 

 

 

 

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• "short-term trade increased through the use of technical "trading systems" - and trade through computer systems !"

 

 

 

 

 

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• "a tax with a microscopic tax rate - on financial transactions !!!!!!!!!!!!"

 

 

 

 

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• "makes the bulk of short-term speculation - unprofitable !!!!!!!!!!!!"

 

 

 

 

 

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• "the introduction of a general financial transactions tax - worldwide !!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "including derivatives - stocks - and currency trade !!!!!!!!!!!! - ( derivatives with greater leverage - should be taxed higher  ! )"

 

 

 

 

 

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• "the tax rate should be between 0.1% - and 0.01% !!!!!!!!!!!!"

 

 

 

 

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• "primary use of tax revenues for the public - for the climate - and to fulfill the millennium development goals !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

Rating Agencies:

 

• "rating agencies have the task of evaluating securities - and borrowers !!!!!!"

 

 

 

 

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• "they should provide objective estimates on the credit-worthiness of debtors - and classify securities according to their risks !!!!!!"

 

 

 

 

 

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• "market actors must be able - to rely on their judgment !!!!!!"

 

 

 

 

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• "private rating agencies have enormous incentives to yield to their customers’ desires - in their assessments !"

 

 

 

 

 

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• "these rating agencies were paid by those - whom they evaluate !"

 

 

 

 

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• "this conduct caused the US financial crisis - private rating agencies rated the risky "mortgage-backed securities" as safe !"

 

 

 

 

 

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• "therefore public agencies independent of profit interests should be created - that carry out the rating of actors and products !!!!!!!!!!!!"

 

 

 

 

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• "and there should be a "registration" - of new products, like derivatives !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

Banking Sector:

 

• "banks have a function for the real economy - therefore private banks should be strictly controlled !!!!!!!!!!!!"

 

 

 

 

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• "the European "economic miracle" is based on - a partly cooperatively organized house banking system !!!!!!!!!"

 

 

 

 

 

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• "the goal of an alternative capital market offensive - should be a public !!!!!!!!!!!!"

 

 

 

 

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• "small-scale and cooperative - house banking system !!!!!!!!!!!!"

 

 

 

 

 

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• "with inexpensive credit - to "real" investing businesses !!!!!!!!!!!!"

 

 

 

 

 

 

 

Shareholder Value:

 

• "the pay of managers was coupled to the stock price - through so-called stock options !"

 

 

 

 

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• "stock options should be prohibited to avoid financial incentives - to short-term business policy !!!!!!!!!!!!"

 

 

 

 

 

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• "shareholder voting rights should be coupled to the time stocks are held - to minimize the influence of short-term interests !!!!!!!!!!!!"

 

 

 

 

 

Equality:

 

• "redistribution from top to bottom - has economic advantages !!!!!!!!!!!!"

 

 

 

 

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• "strengthening the purchasing power of low-income groups - stimulates the economy !!!!!!!!!!!!"

 

 

 

 

 

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• "investments in the real economy are more attractive - compared to investments in the financial economy !!!!!!!!!"

 

 

 

 

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• "all capital income, asset-related income, profit income - should be taxed equally and progressively !!!!!!!!!!!!"

 

 

 

 

 

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• "property taxes like inheritance and gift taxes - should be introduced !!!!!!!!!!!!"

 

 

 

 

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• "and wages should rise !!!!!!!!!!!!"

 

 

 

 

 

 

international Financial Architecture:

 

• "the International Monetary Fund, IMF - should be transformed into a "World Central Bank"  !!!!!!!!!!!!"

 

 

 

 

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• "supplying liquidity - stabilizing exchange rates - and functioning as the "last creditor"  !!!!!!!!!!!!"

 

 

 

 

 

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• "the World Bank and the IMF should be subject - to a democratized UN !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

 

 

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Financial System - US cable - 2009: LINK ¤ 09TOKYO2060


curbing Salaries is not enough - Mainichi - Japan:

 

• "curbing the salaries of financial institutions - is not enough !!!!"

 

 

 

 

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• "the G20 should focus on how to make the transition - from the present financial system !!!!!!"

 

 

 

 

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• "to a new system - that contributes to the society !!!!!!"

 

 

 

 

 

 

 

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US Bailout Plan - US cable - 2009: LINK ¤ 09BERLIN344


Sueddeutsche:

 

• "after listening to Geithner's plan - the US bailout plan !"

 

 

 

 

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• "the listeners immediately come up with one question - if everything is so simple, why has thus far no one come up with this idea  ?!"

 

 

 

 

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• "the answer:  because at least one of the actors will lose - namely the US American state !!!!!!"

 

 

 

 

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• "the USA are supposed to finance the purchase - of the toxic bonds !!!!!!"

 

 

 

 

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• "( state guarantees shouldered by the American people ! )"

 

 

 

 

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• "there is a radical alternative:  the investors should make greater sacrifices !!!!!!"

 

 

 

 

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• "this would be much fairer - than the Geithner's plan !!!!!!"

 

 

 

 

 

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Financial Times:

 

• "the great irony of Geithner's plan, the US bailout plan - is that he !!!!"

 

 

 

 

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• "wants to use instruments - that were responsible for so many financial problems !!!!!!"

 

 

 

 

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• "private investors would de facto get - the possibility !!!!"

 

 

 

 

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• "to speculate - with taxpayers' money !!!!"

 

 

 

 

 

 

 

 

US Financial Crisis - US cable - 2008: LINK ¤ 08BERLIN1529


Frankfurter Allgemeine Zeitung:

 

• "now the time for politicians - has come !!!!!!"

 

 

 

 

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• "to give the global finance sector - a new structure !!!!!!"

 

 

 

 

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• "it is necessary to create - a global framework of rules !!!!!!"

 

 

 

 

 

 

US Financial Crisis - US cable - 2009: LINK ¤ 09SAOPAULO145


Opportunity - O Estado de S. Paulo:

 

• "the US financial crisis demands important reforms - in the world economy !!!!!!"

 

 

 

 

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• "and opens, therefore - opportunities !!!!!!"

 

 

 

 

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• "to rebuild the economy - with a more solid basis !!!!!!"

 

 

 

 

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• "while the financial crisis is artificial - generated by speculators and irresponsible bankers !"

 

 

 

 

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• "the challenge for renewable energy is real - and will only be solved with better technologies !!!!!!"

 

 

 

 

 

US Financial Crisis - US cable - 2008: LINK ¤ 08SAOPAULO636


the Crisis and its long-term Corollaries - Valor Economico:

 

• "what one can affirm - and without great risk !!!!"

 

 

 

 

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• "is that capitalism - will never be the same !!!!!!"

 

 

 

 

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• "among the changes will be - a strict regulation of the financial sector !!!!!!"

 

 

 

 

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• "and controlling the abuse - of executives !!!!"

 

 

 

 

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• "rules should be created - to avoid that !!!!!!"

 

 

 

 

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• "and with justifiable measures - intended to correct the financial crisis !!!!!!"

 

 

 

 

 

 

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US Financial Crisis - US cable - 2009: LINK ¤ 09SAOPAULO71


Financial Regulations - O Estado de S.Paulo:

 

• "governments need - to act !!!!!!"

 

 

 

 

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• "we have to increase financial regulations - globally !!!!!!"

 

 

 

 

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• "and protect the nature - globally !!!!!!"

 

 

 

 

 

 

US Financial Crisis - US cable - 2008: LINK ¤ 08SAOPAULO607


New Deal - Valor Economico:

 

• "the minimum platform to be used should be - a "New Deal"  !!!!!!"

 

 

 

 

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• "rebalancing the economy - from the base !!!!!!"

 

 

 

 

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• "through public spending in infrastructure - and public policies to activate jobs !!!!!!"

 

 

 

 

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• "the new paradigm - therefore is !!!!!!"

 

 

 

 

 

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• "that of cooperation - among peoples and nations !!!!!!!!!!!!"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL MARKET - Wikipedia EN: LINK ¤ FINANCIAL MARKET