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National laws for global capital markets - A contradiction?: Difference between revisions
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National laws for global capital markets - A contradiction? (view source)
Revision as of 15:38, 21 January 2010
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It’s a utopia to think capital markets are adjusting themselves. Financial crisis has shown this won’t happen. Designing globalisation is task of politics. Regulation of politics has tried to alleviate. But a functioning worldwide instrument or institution is needed. To solve these problems and to achieve stabile markets a reform of institutions is necessary. But financial crisis has also shown that politics is not ready to accomplish important changes within the global economic system. Banks that are relevant for the system of free market economy are artificially maintained. And they operate like nothing happened. | It’s a utopia to think capital markets are adjusting themselves. Financial crisis has shown this won’t happen. Designing globalisation is task of politics. Regulation of politics has tried to alleviate. But a functioning worldwide instrument or institution is needed. To solve these problems and to achieve stabile markets a reform of institutions is necessary. But financial crisis has also shown that politics is not ready to accomplish important changes within the global economic system. Banks that are relevant for the system of free market economy are artificially maintained. And they operate like nothing happened. | ||
Europe could play a decisive role in reconfiguration of international financial order. It would be the next logical step after entrenching the EU and a new currency. For Europe it is very important to have steady markets because the EU eastward enlargement will bring along several states without equal financial regulations. So this will be necessary for a future intact structure of the EU. In the past the USA did not make any efforts of regulation. So the United States will probably not be interested in adjustment of financial markets because there are acting the most aggressive financial actors. This will probably not change in session of Barack Obama, because of the distinct capitalism and the huge lobby of financial investors in the US. A regulation would definitely encounter resistance. The grown business finance will not accept a massive regulation. But this must not stop politics from creating an institution. | Europe could play a decisive role in reconfiguration of international financial order. It would be the next logical step after entrenching the EU and a new currency. For Europe it is very important to have steady markets because the EU eastward enlargement will bring along several states without equal financial regulations. So this will be necessary for a future intact structure of the EU. In the past the USA did not make any efforts of regulation. So the United States will probably not be interested in adjustment of financial markets because there are acting the most aggressive financial actors. This will probably not change in session of Barack Obama, because of the distinct capitalism and the huge lobby of financial investors in the US. Finding a consensus between Europe and the USA seems nearly utopistic. A regulation would definitely encounter resistance. The grown business finance will not accept a massive regulation. But this must not stop politics from creating an institution. | ||
The (eventually newly created) institution has to observe trading on capital markets. Especially institutional investors which are seated in liberal states like Luxembourg have to be controlled more strictly. Innovative financial instruments that played a part in contributing to the recent financial crisis should have to pass a detailed examination before obtaining permission. Without these variances the next crisis will be unstoppable. | The (eventually newly created) institution has to observe trading on capital markets. Especially institutional investors which are seated in liberal states like Luxembourg have to be controlled more strictly. Innovative financial instruments that played a part in contributing to the recent financial crisis should have to pass a detailed examination before obtaining permission. Without these variances the next crisis will be unstoppable. | ||