tag:blogger.com,1999:blog-36227136.post8934569034857821078..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: The EU wades into the murky world of shadow bankingOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-36227136.post-88571131673222678372013-09-05T08:45:34.637+01:002013-09-05T08:45:34.637+01:00Another EU disaster in the making which will lead ...Another EU disaster in the making which will lead to further job destruction (primarily in the UK) and lower growth and lower pensions throughout Europe:<br /><br />1. I have just had to move the unitised cash element of my pension fund as it offers me a -0.3% return each year. Yes, that is a minus return! Adding more regulation and hence fees will reduce this even further to nearer -1.0%, meaning that many people like me now have to take on more (unwanted) risk for a decent return. Add this to pointless regulation of hedge funds and UK financial services and it even more unlikely that any of us will be able to retire with an adequate pension.<br /><br />2. With the latest Basel regulations, more stupid EU regulation (AIFMD, EMIR and Solvency II etc) and the Capital Requirements Directive meaning banks having to hold more cash against 'riskier' business operations, banks themselves are exiting many parts of the market leaving some segments unserved or too expensive to use. Enter the shadow banks who provide competition, lower fees and a more honest service than a bank.<br /><br />These are just two examples of many that I can think of.<br /><br />Shutting down the shadow bank market is just going to cause chaos as nobody within the EU understands finance and the law of unintended consequences.<br /><br />The EU and Eurozone have now managed to create the largest destruction of wealth in the history of this planet and NOW is the time for it to stop.<br /><br />I want my country back. I firmly believe that the EU and Eurozone are going to cause an economic crash and, ultimately, the very war that they seek to avoid.<br /><br />UK out.<br /><br />SC<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-63816044041326258242013-09-05T04:02:50.241+01:002013-09-05T04:02:50.241+01:00Ooh, ooh, I have an idea. Instead of keeping the...Ooh, ooh, I have an idea. Instead of keeping the 3% buffer in unproductive cash, why not make the MMFs invest it in eurozone sovereign debt. That never defaults, right?jon liveseynoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-60583424070530045262013-09-04T14:43:24.060+01:002013-09-04T14:43:24.060+01:00Has disaster written all over it.
You cannot regul...Has disaster written all over it.<br />You cannot regulate a sector of which you donot understand a thing.<br />It will either end up in overkill or leaves holes the size of the Moon. Probably both here but more of the former.<br /><br />Add the fact that failed legislation is nearly impossible to change and it has everything in it to become a complete mess.<br /><br />And largely for political reasons. hedgefund apparently are the blame in the misconception-analysis of the crisis so these should be regulated while parties that really f'ed up (next to the banks): regulators and CBs and governments go free. Leaving an ideal platform for a next disaster.Riknoreply@blogger.com