"Outlaw the Shadow Banking System!" - Guess Who Said It?

[Rajiv]

"Outlaw the Shadow Banking System!" - Guess Who Said It?

But how much safer would everybody's savings be if the whole world finally came together to outlaw shadow banking systems and offshore tax havens?

From Gordon Brown's speech to US Congress - Full text of the British prime minister's speech

Also

Well, there's got to be deep regulatory change. We've just been talking, Barack and I, about the need for proper supervision of shadow banking systems, of areas where there was bank practices that were unacceptable, where remuneration policies got out of hand and weren't based on long-term success, but on short-term deals. And these are the changes that we've already announced that we are going to make.

From REMARKS BY PRESIDENT OBAMA AND BRITISH PRIME MINISTER GORDON BROWN AFTER MEETING

This becomes specially important after Obama's 28th Feb Weekly Address

I realize that passing this budget won’t be easy. Because it represents real and dramatic change, it also represents a threat to the status quo in Washington. I know that the insurance industry won’t like the idea that they’ll have to bid competitively to continue offering Medicare coverage, but that’s how we’ll help preserve and protect Medicare and lower health care costs for American families. I know that banks and big student lenders won’t like the idea that we’re ending their huge taxpayer subsidies, but that’s how we’ll save taxpayers nearly $50 billion and make college more affordable. I know that oil and gas companies won’t like us ending nearly $30 billion in tax breaks, but that’s how we’ll help fund a renewable energy economy that will create new jobs and new industries. In other words, I know these steps won’t sit well with the special interests and lobbyists who are invested in the old way of doing business, and I know they’re gearing up for a fight as we speak. My message to them is this:

So am I.

Thanks to Matthias Chang of futurefastforward for tracking down this train of logic.

[ax]

Re: "Outlaw the Shadow Banking System!" - Guess Who Said It?

Except that we'll be offering hedge funds a 90% subsidy to buy worthless assets....

[D-Mack]

Re: "Outlaw the Shadow Banking System!" - Guess Who Said It?

I thought it was Mr. LTCM

Scholes Advises ‘Blow Up’ Over-the-Counter Contracts (Update2)

By Christine Harper

March 6 (Bloomberg) -- Myron Scholes, the Nobel prize- winning economist who helped invent a model for pricing options, said regulators need to “blow up or burn” over-the-counter derivative trading markets to help solve the financial crisis.

...
http://www.bloomberg.com/apps/news?p...d=aNRppMJqgURA

[skidder]

Re: "Outlaw the Shadow Banking System!" - Guess Who Said It?

The real purpose behind this joint (U.S./Britain) effort to rid the world of "tax havens" is to close out the last bastions of banking privacy so that unfettered taxation can be realized against all citizens regardless of where they live. Just more "one worlder" agenda. The OECD has been the point of the spear on this effort for years. It's a pretty transparent effort against banking freedom/privacy and I expect more class warfare/tax the rich by closing this loophole language from gov'ts in an attempt to dupe j6p into getting behind the effort.
I hope the rest of the world tells the US/Britain to pack sand.

[Rajiv]

Re: "Outlaw the Shadow Banking System!" - Guess Who Said It?

Skidder, please do look at the work of Emmanuel Saez and that of William Domhoff before you go too far down drinking the "Kool-aid" route -- also read between the lines in EJs post here