The European Central Bank president, the highest representative of the banking system of the old continent was declared critical of suffering from too little regulation of financial markets. The control and regulation the basis of balance and transparency bank Current financial products ranging from simple current accounts, deposits, mutual funds, stocks, corporate debt to complex structured products, warrants, derivatives, futures, bonds or hedge funds . The first group may not need a comprehensive and governing control to the maximum for a payment of money between the vendor or applicant or the speculation of the market value of a company, organization or a state. Guarantees of a deposit or current account are obvious. The funds and activities are governed on the revaluation of a company must be audited by strict commercial regulations.
The securities of investors in these cases were and are obvious. In the second group experience and the current financial situation we demonstrate the need for a extreme regulation and even the obligation to limit access to any investor. The logic also required deep reflection in products where we can sell something that we have not yet obtained, securing payment to the recovery of a debtor of a mortgage doubtful debts, ensure profitability and guarantee benefits based on unsecured just expected. Check out Nicholas Carr for additional information. No president of the central bank, monetary fund, World Bank or maximum political representative has questioned this lucrative situation until it has hurt their economies and has achieved to bring about a global recession. After Trichet other leaders will reflect and critique the financial markets. The most incongruous of these statements is the responsibility that none of them takes and questions. From now seems to exist more regulation and control but incompatible with the traditional capitalist model seems to be difficult to repair.
The free market in the United States stood in front of the control of Mr. Trichet Another problem that will need more control supporters in the financial market is even greater confrontation with the world economy: the United States. The Bush administration has already said that would undermine the free market rules and effective recovery of its economy is based on giving freedom to investors, companies and financial markets to continue leading the world economic control. The limitation and control lead to an orderly and linear growth but the balance would result in a redistribution of wealth that make them uncompetitive. Hopefully the claims and wishes of Mr. Trichet end up being a reality.