Wall Street finds a foreign detour around U.S. derivatives rules

Comments (7)
Numb3rTech wrote:

$640 Trillion???? Could that collapse the entire world monetary standards? I can’t even fathom the United States being in a fiscal debt of just $1 Trillion dollars, let alone the amount it is.

Dec 02, 2012 4:47pm EST  --  Report as abuse
Marvin_Aus wrote:

Financial globalization needs same rules and regulations for all global users. If London or Singapore is an offshore financial centre, we are all in trouble. Our pensions and other assets were saved with great difficulty in 2008. We cannot allow this to happen again. We, consumers of financial products, need protection from the wise irresponsible bankers, traders and governments. G20 should ensure all countries follow the same rules and regulations. As for the rest smaller countries who like to benefit from irregularities we need to know who they are so we can put pressure on our governments to intervene. Let’s stop this mess.

Dec 03, 2012 1:07am EST  --  Report as abuse
JamesChirico wrote:

The solution is actually very easy, foreign banks that don’t come under our insurance default idea of reserves are forbidden to trade in any our markets, forbidden to transfer money back and forth with our banks. Without our markets, interbank transfers they can’t make money.

Dec 03, 2012 5:40am EST  --  Report as abuse
Mr.Tubarc wrote:

In order to protect money from deterioration like the last economic meltdown a simple equation can fix it for good:

Investment = Investment + Profit

So, the risk is for the takers, while profit would come from production.

Basic principles of offer/demand should be protected from combined global effect of greed/fears which can get ugly and so devastating.

It looks like a permanent break to prevent it falling while it goes up as production supports it fair and square.

Dec 03, 2012 7:23am EST  --  Report as abuse
QuietThinker wrote:

We need to rid ourselves of the notion that these guys speculating with OPM (Other Peoples Money) are bankers – they are gamblers. The press should call these guys “gamblers” not “bankers.” Deposit institutions should not have anything to do with gamblers, that should include their foreign affiliates. It really doesn’t make any difference if your “banker” flies to Vegas or Monte Carlo, if it is your money he is betting. I would rather my banker stayed home and made well thought out loans to local small businesses. Every dollar being bet on derivatives is a dollar not being loaned out into the productive portions of our economy.

JamesChirico has a good idea. However, the real answer is to reinstate Glass-Steagall and then force the “too big to fail” institutions to break up to get in compliance. If they lose a few bucks in doing so that is repayment for past sins.

Dec 03, 2012 9:32am EST  --  Report as abuse
QuietThinker wrote:

We need to rid ourselves of the notion that these guys speculating with OPM (Other Peoples Money) are bankers – they are gamblers. The press should call these guys “gamblers” not “bankers.” Deposit institutions should not have anything to do with gamblers, that should include their foreign affiliates. It really doesn’t make any difference if your “banker” flies to Vegas or Monte Carlo, if it is your money he is betting. I would rather my banker stayed home and made well thought out loans to local small businesses. Every dollar being bet on derivatives is a dollar not being loaned out into the productive portions of our economy.

JamesChirico has a good idea. However, the real answer is to reinstate Glass-Steagall and then force the “too big to fail” institutions to break up to get in compliance. If they lose a few bucks in doing so that is repayment for past sins.

Dec 03, 2012 9:32am EST  --  Report as abuse
vperry wrote:

Seems to me with the absence of regulations and foresight governments want to crash the whole world and maybe for e it into one government. How else can this be explained?

Dec 03, 2012 10:50am EST  --  Report as abuse
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