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Thread: Norwegians become crown millionaires

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    Re: Norwegians become crown millionaires

    Quote Originally Posted by joG View Post
    Let's just take the free flow of capital you speak of . This is becoming slowly the case. In the 1980s and 1990s it was not the case. There were a very lot of domestic regulations in each country that prevented free flows. Take the capital requirements on assets held by banks as a simple example. A bank could hold Landesbank bonds at zero cost, as there was a guarantee by the Land not available to competing banks. This sucked up capital that would have otherwise been deposited elsewhere. When the guarantee was finally ruled illegal the Landesbanks had a grandfathered period in which the paper they issued was still covered. During this period they issued huge amounts and having to reinvest bought high yield paper they did not understand as they had had practically no experience and therefore had no organizational experience in production and handling. As they had lived in a protected environment of regulatory based subsidies their business models did not work. When the structured paper ran into problems they had serious problems that cost the taxpayers huge amounts of money . A number of the institutes folded in one way or another.

    This is one of a large number of cases of problems caused by regulation preventing free flow of capital, while the reason the Landesbanks could not handle the structures was also caused by bad regulation.
    In the 90s they made the Euro ... which freed up Capital EXTREMELY, you can talk about regulation but you have to compare it to what it was earlier, in the 90s in much of europe it was basically over for the socialists and the big time for Financial firms. I mean look at what happened in Iceland, when Capital could flow freely from Iceland to the Uk, you start having these giant Investments in Iceland, promising Returns that couldn't come, and the banks could get away With it because they had protected themselves, but not the consumer, I mean we can get examples back and forth. But the fact remains, in the late 80s and 90s liberalization of the economy happened and we are feeling the fruits of it .... of coarse there were still regulations, but in the late 80s and early 90s the Socialists lost and the neo-liberals won, and the neo-liberals are still in Control.

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    Re: Norwegians become crown millionaires

    Quote Originally Posted by RGacky3 View Post
    In the 90s they made the Euro ... which freed up Capital EXTREMELY, you can talk about regulation but you have to compare it to what it was earlier, in the 90s in much of europe it was basically over for the socialists and the big time for Financial firms. I mean look at what happened in Iceland, when Capital could flow freely from Iceland to the Uk, you start having these giant Investments in Iceland, promising Returns that couldn't come, and the banks could get away With it because they had protected themselves, but not the consumer, I mean we can get examples back and forth. But the fact remains, in the late 80s and 90s liberalization of the economy happened and we are feeling the fruits of it .... of coarse there were still regulations, but in the late 80s and early 90s the Socialists lost and the neo-liberals won, and the neo-liberals are still in Control.
    Regulation in Germany has increased considerably. Just look at consumer protection or the tests bankers have to take. It is almost like in the USA of the late 1970s. Or take derivatives law and Finanzinnovationen laws. Whole literatures and beaurocracies have come into being. It is just that most people do not know these things.

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    Re: Norwegians become crown millionaires

    Quote Originally Posted by joG View Post
    Regulation in Germany has increased considerably. Just look at consumer protection or the tests bankers have to take. It is almost like in the USA of the late 1970s. Or take derivatives law and Finanzinnovationen laws. Whole literatures and beaurocracies have come into being. It is just that most people do not know these things.
    Strangely enough Germany is the country that hasn't suffered the same way the reset of europe has from a Financial crisis and an economical crash.

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    Re: Norwegians become crown millionaires

    I hope they tax the **** out of them, cause that's the way they do things there. Greedy ass Norwegians need to take it on the chin.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Norwegians become crown millionaires

    Quote Originally Posted by American View Post
    I hope they tax the **** out of them, cause that's the way they do things there. Greedy ass Norwegians need to take it on the chin.
    It's a public fund anyway, so there is no point of doing that.

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    Re: Norwegians become crown millionaires

    Quote Originally Posted by RGacky3 View Post
    Strangely enough Germany is the country that hasn't suffered the same way the reset of europe has from a Financial crisis and an economical crash.
    They had already taken a good part of the first hit in the almost decade long stagnation. If you calculate, what that cost, you might realize how expensive that regulatory problem was for them.

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    Re: Norwegians become crown millionaires

    Quote Originally Posted by joG View Post
    They had already taken a good part of the first hit in the almost decade long stagnation. If you calculate, what that cost, you might realize how expensive that regulatory problem was for them.
    I would argue that the regulatory saved them, and they've been paying for the recklessness of other countries in europe that let the banks run amok.

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