The lessons and warnings of the financial tsunami

Goldman Sachs and Morgan Stanley were not sold, but Bank holdings. This is the latest news from Wall Street, but it must not be the last news.

I personally believe that this is one of the most important steps that the United States has taken so far, a step in the right direction, but it does not solve the fundamental problem-the reconstruction of institutions and order.

The root of the problem is the rampant proliferation of financial derivatives caused by the dollar's dominance without a gold standard, and the flood of global liquidity encouraged by ultra-low interest rates (see article). Investment banks, known for their risk management and life, are behind the scenes, at least the most important. America's five biggest investment banks are like the riders behind a hurricane. Now that the tide is out, we know: Who is the naked swimmer; so the tide backs and the Fed orders: put on a bikini.

For 90 years, however, the five--1929-2008 have been synonymous with Wall Street, the world's financial system, and in particular the five shining crowns of the American financial system. Is the Fed really determined to bring America's http://www.aliyun.com/zixun/aggregation/30537.html "> unique" system back into the conservative, old-fashioned European financial system?

The advantage of the US financial system and system lies in his investment banking system, which is different from that of the whole of Europe, and since the Great Depression of the 29, it has taken the form of this sort of business, that is, the "Steagall"--------------the The act was repealed in 1999. But the fact that the law is really starting to ferment completely is, I am afraid, due to the financial crisis – if the news is true, the five most proud investment banks in the US financial system have been annihilated. And in the whole European and Continental law system, has been adopted is a mixed business model-the bank-oriented financial Group holding insurance, financial operations such as banking, investment banking and asset management and investment are comparable to those of UBS and CS (previously CSFB), and investment banks in the US – Debt and equity underwriting, asset management and investment operations have been self-contained and, like the five largest investment banks, have been the vanguard of emerging economies, exported to the world as a representative of the capitalist system, after the end of the 89 world.

The biggest difference between the financial crisis and the Great Depression of the 29 is that, although the division order has been lifted, but the global banking system is not deeply involved, and as a result of the floodgates of the financial crisis, the division, it is surprisingly the most important behind the financial crisis and the victims , and the development of the financial crisis to such a point, the way Americans think is precisely the opposite--to carry out the mixed business. It is really time to move the world, like Kate.

The Fed is finally determined to cover up the unbridled greed of financial investment institutions: a bank-holding model that adheres to prudential principles as the first iron law can curb the hubris and greed of some financial investment, but if it is the bigger guy in the global financial system that has problems, institutional or structural imbalances, Greed and arrogance the beast will eventually run out of the bottle. Mixed industry-crisis-division-crisis-mixed industry, this is not like a Chinese people are familiar with the cycle? Yes. This is a vicious circle that solves the normal response of a problem during a period, but has not yet touched the root. Besides being cynical, it is not enough to help the United States through the catastrophe, in fact, central banks, and sovereign governments that dominate the region-China and other emerging economies-should act aggressively to negotiate with Europe and North America to build a new global financial system, even if it is patched up: the diversification of oil balances, such as the gradual principle of financial openness, the retention of monetary autonomy and so on. Not expected overnight, but from China's point of view, at least not by the United States on the Wall Street agenda to lead the nose.

To rebuild the new global financial order, this is the "world trend, Mighty."