As ever with the financial crisis, the Authorities in Europe are taking aim at the wrong targets. Today we can see the Private Equity and Hedge Fund industry being targeted for bonus payments like the banks.Yet, the history of the crisis shows the Hedge Funds had very little to do with anything, the short selling crisis was made up; bank share prices fell more after the short selling ban. When it ended the share prices of banks rose!
However, a victim needs to be found, and the Eu authorities don't want the people to know that many of the problems are in fact regulatory failures; exploited by the Hedge Funds.
Also it so happens that this industry is in London, outside the Euro and with an incoming Euro-sceptic Government. A nice target to hit. The Hedgies are going to Switzerland; personally I can see benefits for the UK to copy the Swiss model of co-operation with the EU rather than membership if we are simply going to be targeted as evil Anglo-Saxons at every opportunity.
9 comments:
In my greener days, I was ambivalent about the EU, but as I have matured I have become evermore against it. These days the only thing that I approve of is that it allows pretty barmaids with seductive accents to serve me beer. I am too old for anything else from them.
It is not only the UK hedge funds that will suffer from EU spite, but those domiciled in the overseas territories such as the Cayman Islands. The UK should pull out of the EU completely and let them get on with it.
I don't buy the argument that hedge funds are an unalloyed good. That said if we all believe in free markets, let hedge funds do as they please and companies do the same. If companies are happy to have their shares traded by hedge funds so be it. And if they (or rather their shareholders ) would prefer they do not trade their shares, let them restrict it. Can't say fairer than that.
Also it so happens that this industry is in London, outside the Euro and with an incoming Euro-sceptic Government.
What incoming Eurosceptic government, CUS? It's precisely because it is not Eurosceptic that the Alliance was formed.
Agreed, but the thing about the EU is, if we pull out I fear they will start using any excuse they can to impose trade restrictions on us unless we implement their stupid laws (which if we aren't in we won't be able to negotiate and might become more and more aimed at our industries).
I can't see the point in leaving the EU unless we can stop implementing their stupid laws and without damaging our economy.
An incoming Euro-sceptic govt ?
Ha ha ha ha ha ha !
Out of the EU please. Poorer ? May be, but I very much doubt it.
In any case - plenty of poor countries are worth visiting. I've hated being 'rich' ... and yet so full of shit.
By the standards of the curretn Government the incoming one are eurosceptic. It is not an absolute.
SL - We won;t be leaving sadly,I know this as much as I want it.
For all the laughing at Cameron his idea to re-negotiate inside the EU is the most Eurosceptic postion we have had in 20 years for a Government. It is our best hope of ANY change at all.
"For all the laughing at Cameron his idea to re-negotiate inside the EU is the most Eurosceptic postion we have had in 20 years for a Government. It is our best hope of ANY change at all."
Then there is no hope of any change.
Do you imagine the EU having striven for the last 30 years for what they have at last obtained will stand by and allow one of the largest countries to negotiate its way out?
No neither do I.
The one salient point to remember about the EU is this: the two biggest net contributors to its coffers are Germany, and Britain. Were we to simply withold some or all of our contribution, we would immediately cause a financial crisis in the EU and this would make all the so-called allies therein start fighting like cats in a sack over the remaining money.
We can threaten them with something, and there ain't much they can do to threaten us back.
So, that gives us a basis to argue from. Let the games begin!
I liked it.
Bathmate
Post a Comment