imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Submissiveness Toward the Finance Markets

by Gustav Horn Saturday, Oct. 06, 2007 at 7:33 PM
mbatko@lycos.com

Finance market transactions must be made more expensive. Finance market critics warn of a casino capitalism. Are businesses only objects of speculation for global invewstment capital?



Submissiveness Toward Finance Markets

author: Gustav Horn e-mail: mbatko@lycos.com

Finance market transactions must be made more expensive. Finance market critics warn of a casino capitalism. Are businesses only objects of speculation for global investment capital?

A POLICY OF SUBMISSIVENESS TOWARD FINANCE MARKETS

Economist Gustav Horn on the increased speculation crises, deficient controls and consequences for workers

[This interview published in: Berliner Zeitung, 9/29/2007 is translated from the German on the World Wide Web.]



Prof. Horn, we had the Asian crisis, the Russian- and Brazilian crises and the collapse of the LTCM hedge fund. Then the Internet bubble burst. Does a global credit crunch threaten starting from the US mortgage crisis?

Yes, we are now experiencing this. The importance of the finance markets has increased as well as the number of products sold there, especially the number of non-transparent products. With these products, investors admit at the end the profits were not as high as expected. Then massive losses, herd conduct and crises follow.

Finance market turbulences seem to increasingly threaten the economy.

Crises become more frequent and more significant. If the finance market were only a peripheral phenomenon of economics, turbulences could be ignored. But the global capital market finances global economic activity. Thus we have a global problem.

According to the textbook, financial enterprises are service providers. They should provide credit to businesses and households.

The financial sphere has made itself independent. Today concrete economic investments are not the only financed enterprises. Today independent financial products enable profits to be realized. Inestimable risks are hidd3en in these products. Still there are there.

New powerful actors like hedge funds and Private Equity companies are underway on the markets. The value of global speculative securities - "derivatives" - is ten times the global economic output. Can this mass of speculative capital be controlled?

Capital streams can be influenced but not really controlled. At the moment, we large3ly refuse an attempted governance or control. For a long while, a policy of submissiveness prevailed that renounced on regulation. We are now paying the price for that.

Still there are finance- and stock exchange monitoring investment guidelines and rules for personal capital resources.

While rules exist, they are certainly not tight enough regarding the risks of individual financial products. The current crisis shows that banks cannot rightly assess the risks.

What must be done?

To stabilize the finance markets, we need regulations that make the products transparent. Every customer and every bank should know the risks that are involved. The finance monitoring must test new products and estimate the risk. Finance market transactions must be made more expensive. For example, a stock market sales tax is urgently necessary. This already exists in many countries. If one would have to pay a price for a stock market transaction, the incentive to gain more information about the products would be strengthened.

Can crises be prevented?

No, only contained.

Finance market critics warn of a casino capitalism given the inflated finance sphere. Are businesses only objects of speculation for global investment capital?

I would not go that far. However the finance markets are certainly powerful. Businesses are increasingly forced to satisfy the finance markets - the investors. Every business manager must grapple with analysts today and submit to the desires of the capital markets.

This pressure raises the profitability of businesses.

However working conditions deteriorate. Less and less business profits land in the hands of employees. We have falling wage rates worldwide. Conversely, more and more profits land with the finance markets and their power over firms grows.

How should the unions react?

Unions must build their counter-power. This counter-power consists in a regulation of the markets. This regulation must be transnational.

Germany's initiative to regulate hedge funds has met with little approval in the US and Great Britain. These countries are in competition for global investment capital. How can an accord be reached between these states?

Still there is a worldwide interest in persons working in businesses - the majority of people - whose life and working conditions are not destabilized by the finance markets. The current crisis shows the dangers of unregulated markets. In the US and Great Britain, people suffer under this crisis.

What dangers do you see as a consequence of the current credit crisis?

At present the situation is still obscure. The banks will provide information at the end of the month. Some banks - like Deutsche Bank - admit mistakes and quantify their risks. This process will intensify. How intensely the threatening or real losses of banks will influence their awarding of credits is the crucial question. Will they strongly raise the interest rates and confer fewer credits so the investment process comes to a standstill? That would be severe.

homepage: http://www.mbtranslations.com

address: http://www.corpwatch.org

Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator S19 12:51AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy