Download - Towards a sustainable financial system
Ulf Dahlsten
Ultimately this is all about accountability: we need a financial sector that is accountable to the real economy—one that adds value, not destroys it.
1950 1952 1955 1957 1960 1962 1965 1967 1970 1972 1975 1977 1980 1982 1985 1987 1990 1992 1995 1997 2000200220052007 2010
In the 60’s each additional dollar of new credit led to 59 cents in new GDP in the US, during the 00’s only 18 cents
Only 6,5 % of the capital invested 2005-2011 by private equity funds was used to add capital to the companies
The volatility on the stock markets is blocking the possibilities for equity financing
There is an emerging equity gap. McKinsey has calculated that European companies will lack 3 trillion dollars in equity by 2020
Eoropean bank assets in relation to GDP
Going from 600 000 to 85 000 000
The Chicago Plan (Kumhof)
Capital flow controls
Weighted liquidity buffers (Basel)
Tobin tax
Innovative regulations
Developed bonus systems
Separate investment banks from retail banks
Break up the “mega-banks”
Reintroduce partnerships for investment banks
Recreate local banking
Develop the corporate bond market
Develop alternative monetary systems (Lietaer)
“Regional reserve currencies” – the USD, the EUR and the RMB.
Chinese proposal: A new global reserve currency
• No need
• A global democracy
• Create an international legislator for the global market economy
• Stop globalization – delocalize!