G7 communique: unreal. A recipe for insider trading

[Paciente]

Comentário (algo sarcástico, mas pertinente) de um analista/colaborador do "Le Metropole" sobre o comunicado emitido pelo G7


G7 communique, unreal. A recipe for insider trading

The G7 communiqué is absolutely astonishing. They claim that "Along with other advanced financial techniques, including credit derivatives, hedge funds have contributed significantly to the efficiency of the financial system," Good grief! Elsewhere in the communiqué they say "the Financial Stability Forum, an international organization bringing together the financial industry, regulators, and central bankers, will be asked to update its 2000 report on highly-leveraged institutions." So it's highly leveraged institutions like hedge funds using financial weapons of mass destruction and institutionalized gambling that has made our financial system so much more efficient! Then the icing on the cake is QUOTE Under the proposals agreed at the weekend's G7 summit, Gerald Corrigan, former president of the New York Federal Reserve, who compiled a report in 2005 on ways to improve the stability of financial markets, will help encourage direct contacts between national finance ministries and hedge fund managers- END

If the system is so much more efficient why would it need Finance Ministers to be in DIRECT contact with hedge fund managers! Can you imagine the phone call

"Hey, Tom just wondering what your credit default swap exposure is this week"

"Oh, it's running at about half a trill or so"

"OK, the bond market is looking a bit weak; can you not go above $600 Billion this week?"

"No, probs! But you owe me for this"

The accolades that are heaped upon the derivatives market for having brought us "efficiency" is like claiming how safe offshore power boat racing is because no one has got killed recently!

What worries me most is that supposedly conservative and intelligent people can issue a communiqué that reads as if it could easily have been dictated by Emperor Nero!

[Antunes]

Boas Paciente,

De facto parece que as leis são só para alguns... 

Abraço,

Antunes