In his wonderful book "The Birth of Plenty", W.J. Bernstein shows that all countries with strong economic growth must have at least one feature: a strong and efficient financial system. Without this system business cannot expand and display spirited growth. An example is Italy, which is doomed because of its medieval financial system (besides having a huge bureaucracy).
Naked short-selling has been outlawed in the US. One more restriction to our financial system. The outcome is that more and more domestic and international investors are moving their money to London or other more attractive financial markets.
We need to be careful. We can legislate ourselves into oblivion if we put so many constraints to trade and investment which scare investors. In a globalized economy people seek the most efficient way to invest their money.
The increase in regulations, caused by the total lack of supervision by those who were sleeping at the wheel (see posts below), is one of the reason the dollar has lost its glitter.
The markets always win!
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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