New Regulations for the New Normal.

"They took the credit for my second symphony, rewritten by machine on new technology..." amazing how much we all rely on this new technology stuff.. Until putting your hand on a mobile phone the “wrong way” cuts the signal off- then panic ensues and legal writs start to be written. Maybe not surprising, therefore, that the financial world also managed to invent lots of things they didn't really understand properly...Derivatives, structures etc. and then didn't know what to do when they all went wrong. With that background, most of the measures announced by Basle 3 and the UK seem actually quite sensible: leverage limits, derivatives traded via exchanges, putting aside capital in good times to cover bad times etc. The banks screaming at these restrictions are, in many cases, the same ones that almost wiped themselves out when they were allowed to do their own thing. Having said that- I hope the authorities get people to sort out the details that actually understand how markets function... someone with no political agenda, a good understanding of what is needed and what is just populist nonsense, someone with experience of good times and bad in the financial world and someone with the reputation and gravitas to take the movers and shakers along with him.. My number is at the top of the screen... seriously though, I'm sure they will find suitable people and...Oh look... another flying pig just passed our window!!!
'm sure they will find suitable people and...Oh look... another flying pig just passed our window!!!
Right now these markets want to go better and you can get hurt standing on principle and resisting the trend. Just have your exit strategy ready, don’t get fooled and don't get greedy.

(My thanks to The Buggles for the opening lyrics)