Why was the GB government so quick to say they were not going to help with the German ban on Naked Shorting and not going to support new regulations on Hedge funds?
You may not be asking yourself this question – at least not this early in the day. But they were asking it yesterday in Germany,- in parliament and on Television (ZDF was one place).
And the answer is that 80%C of Hedge funds in Europe are in LONDON. OK. SO what?
The UK government sees the hedge funds as one of the last Golden tax Geese left alive in GB. And this is part of the idiocy and cowardice of our leaders. They will do nothing to offend the Hedgies because the government want to tax their ‘perfectly legitimate’ profits.
But what are those profits exactly? Well they are in part betting on currencies and bank defaults. Think of Paulson and Co in the Goldman affair recently or Soros in Black Wednesday. The profits the UK is desperate to ‘protect’ so they can be taxed are coming DIRECTLY from European and UK bail-outs. In other words European and Uk tax payers are bailing out nations and banks so tha Hedge funds can bet against those bail outs, help generate a collapse and a failure of the bail out and take the money we put up, into their own pockets.
Cameron and Clegg then grovel along all unctuous and humble and deferential, and ask pretty please, if they can tax just a little bit of that profit. That small part the accountants haven’t found ways of spiriting – entirely legally and ethically – away.
There was mayhem in the German Parliament yesterday – or mayhem German style anyway – and this is part of the reason why.
Albion, it pains me to say, is not covering herself in glory.
hey Golem,
if you have an hour to spare, check out this lecture Niall Fergerson gave the other day. He's as callous sounding and cold-blooded as usual, but there's some very interesting stuff in it
http://blog.beliefnet.com/roddreher/2010/05/niall-ferguson-the-metrics-of-doom.html
I'll do that Tam, but only because you recommend.
I find Prof Ferguson difficult to stomach. An arch apologist.
I tend to learn more from the people I dislike than the people I agree with! In particular, he sounds very convincing on how the bond markets work (although I'm no expert)
True Tam.