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City in danger of falling victim to....

Discussion in 'Finance & Banking' started by Tropo, 6th May, 2009.

  1. Tropo

    Tropo Well-Known Member

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    City in danger of falling victim to EU wiles and becoming another Antwerp

    ...The City of London is on borrowed time.
    Great banking centres can prosper for 40 years or so after the host country has lost industrial leadership but then some shock or political upset exposes the fragility of it all.

    ...There was eerie resonance to last week when the EU unleashed its assault on Britain's hedge funds and private equity. Those behind this drive are well aware that hedge funds were no more than bit players in the credit bubble. The real villains were banks with 30 to 50 times leverage and we know from the IMF that Europe's banks were the worst with their off-books "conduits".

    ...That said, our predators did not cause the global financial crisis.
    The ultimate villains are the central banks of the US and Europe, which set the price of credit too low for year after year, and Asian governments holding down currencies for export advantage.
    The banks, buyout funds and assorted miscreants were mere instruments of destruction, not causal agents. If we fail to see that, we have learnt nothing.
    more...City in danger of falling victim to EU wiles and becoming another Antwerp - Telegraph