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Are Finance Ministers Idiots?!
Group vows to establish global tax on financial transactions
Read the above headline on in the FT. In the article it quotes ministers who think Hedge Funds, Speculators are to blame - and to be punished with a tax on financial transactions - for the girations in the CDS market. "Group vows to establish global tax on financial transactions" <-- Yeah, that will really really help *rolleyes*
Actually this article is better to link to as FT has subscriber-only access:
But after months of threats and deliberations, French, German and Spanish leaders within the EU are expected to push ahead with a directive which is aimed at clamping down on speculators who they believe contributed to the global credit crunch and more recently pushed Greece to the brink of collapse.
Read that quote above and you feel like shorting EUR even at these levels. These guys really don't get it.
I've been watching the action in the CDS market. And there's nothing inplausible or immoral about what's happening. Why wouldn't anyone buy protection when a country like Greece has lied about its accounting and is seing massive strikes and demonstrations? Why wouldn't people sell EUR if there's a real risk of contagion? And now demonize and tax the people hedging their portfolios?
Finance ministers are politicians just looking for scapegoats for their own (or predecescors) shortcomings. No tax on transactions is needed. It's pretty disturbing that these morons think that they can somehow hide the ugly truth that a lot of EU countries just have been fiscally responsible the way a 5year old is responsible when given pocket money and sent past the sweet shop... They need to realize that they can't spend money they can't repay. Isn't it incredibly irrational to want to punish people wanting to protect themselves against this accident happening in slow motion?!
these guys are f'kin morons. They'll try to get money from any source possible to fund broken systems.
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