gf3 Posted March 12, 2013 Share Posted March 12, 2013 http://www.telegraph.co.uk/finance/financialcrisis/9806876/EU-launches-search-for-most-dangerous-financial-product.html Sven Giegold, a German member of the European Parliament is on a mission to find them and stamp them out, Reuters reported.The European lawmaker, who launched the competition with two non-governmental groups, wants to find the next financial product - such as subprime mortgage or collateralised debt obligations (CDOs) - that could unleash turmoil on the financial world. "Financial products can be dangerous in several ways," said Giegold. "They might be intransparent for investors, investing in harmful technologies or products, causing systemic risks or are unnecessarily complex." Although there is no prize for the winner, Giegold hopes the competition will spur supervisors and regulators into taking more action, such as banning certain high-risk products. Despite the fact that many of the riskiest and most complex products, such as multi-tiered synthetic CDOs, unravelled five years ago when the financial crisis first struck, the shockwaves from products such as underperforming pensions and mis-sold payment protection insurance (PPI) are still being felt. Today's low interest rates provide a fertile ground to sell unsuitably complex financial products to investors looking for excess return," said Frederic Hache, a former banker who sold structured products and now works for Finance Watch, a public-interest group that seeks to shape regulation. "Much remains to be done to curb unnecessary complexity in product design." Those concerns were echoed by Paul De Grauwe, an economist with the London School of Economics and one of the most influential voices in assessing Europe's sovereign debt crisis. "There is lots more regulation for sure but the banking model has not changed much," he said. "Banks continue to develop highly intransparent products." The competition, which closes on February 15, will accept proposals on its website: http://www.dangerous-finance.eu 22 minutes in Quote Link to comment Share on other sites More sharing options...
Butthead Posted March 12, 2013 Share Posted March 12, 2013 "There is lots more regulation for sure but the banking model has not changed much," he said. "Banks continue to develop highly intransparent products." That's because you keep bailing them out. Stop the bailouts, remove the guarantees, and let banks fail when they get it wrong. Oh and prosecute individuals who are guilty of fraud using the laws that are already in place (no more "too big to jail"). There. Sorted. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 12, 2013 Share Posted March 12, 2013 No mention of: Dual-income mortgage? Self-cert mortgage? I.O. mortgage? Brown's insatiable Baleout machine? Quote Link to comment Share on other sites More sharing options...
easy2012 Posted March 12, 2013 Share Posted March 12, 2013 http://www.telegraph.co.uk/finance/financialcrisis/9806876/EU-launches-search-for-most-dangerous-financial-product.html 22 minutes in The PIGS government bonds ? Quote Link to comment Share on other sites More sharing options...
erranta Posted March 12, 2013 Share Posted March 12, 2013 That's because you keep bailing them out. Stop the bailouts, remove the guarantees, and let banks fail when they get it wrong. Oh and prosecute individuals who are guilty of fraud using the laws that are already in place (no more "too big to jail"). There. Sorted. You will never sort it until large swathes of Goldman 'lobbied' shills are removed from house of commons/lords and in other echelons (bent barristers/lawyers) of Govt (This pisstake of word 'Goldman' is one of the presents given to Jesus (symbolic Gold) in the Bible - not for these non-believing types) Ever noticed the colour of the benches (Greenest Govt ever) = Commons benches Red in Lords passing bent laws undoing thousand years of hard learned "Fairness" Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 13, 2013 Share Posted March 13, 2013 fiat currency? Central Banks? The income tax? Quote Link to comment Share on other sites More sharing options...
erat_forte Posted March 13, 2013 Share Posted March 13, 2013 fiat currency? Central Banks? The income tax? Government bailouts of failed private businesses is definitely no.1. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted March 13, 2013 Share Posted March 13, 2013 Our rent-a-currency money system: Is it money? Is it credit? No, it's Superscam! http://www.positivemoney.org/2013/03/do-banks-create-money-or-just-credit-new-video/ Quote Link to comment Share on other sites More sharing options...
Snafu Posted March 13, 2013 Share Posted March 13, 2013 You will never sort it until large swathes of Goldman 'lobbied' shills are removed from house of commons/lords and in other echelons (bent barristers/lawyers) of Govt (This pisstake of word 'Goldman' is one of the presents given to Jesus (symbolic Gold) in the Bible - not for these non-believing types) Ever noticed the colour of the benches (Greenest Govt ever) = Commons benches Red in Lords passing bent laws undoing thousand years of hard learned "Fairness" Please report to the nearest psychiatric hospital. You really wind me up with your CONSTANT ******ing nonsense. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 13, 2013 Share Posted March 13, 2013 Please report to the nearest psychiatric hospital. You really wind me up with your CONSTANT ******ing nonsense. Leave off 'im. Quote Link to comment Share on other sites More sharing options...
scepticus Posted March 13, 2013 Share Posted March 13, 2013 The most dangerous financial product is insured bank deposits that earn interest. That's why, originally, such things were banned (when deposit insurance was first instituted). Quote Link to comment Share on other sites More sharing options...
Lull Posted March 13, 2013 Share Posted March 13, 2013 Please report to the nearest psychiatric hospital. You really wind me up with your CONSTANT ******ing nonsense. I find his posts characterful. He clearly has a high IQ, just thinks differently. Leave him alone - sanity is just an opinion.. (Evidenced by the fact that most think you are crazy if you say that higher house prices are not a good thing). If you haven't learnt to live and let live by this point in your life then you have a long way to go. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 13, 2013 Share Posted March 13, 2013 The most dangerous financial product is insured bank deposits that earn interest. That's why, originally, such things were banned (when deposit insurance was first instituted). Yes, historically, interest was a hedge against default risk, and so debt was at least somewhat priced logically. Since the advent of central banks, interest is a hedge against inflation, and thanks to that, landbanski or Northern Rock could borrow at the same rate as HSBC. And greenspan has the shirt to call banks behaviour 'irrational' exuberance... Quote Link to comment Share on other sites More sharing options...
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