According to this...In the 2009 budget, the then chancellor, Alistair Darling, said: "We have identified loopholes and schemes which, when closed, will result in £1bn of extra revenue over the next three years..."
Why were there any loopholes left even then ?
And after that Labour budget, why are there loopholes now ?
According to this: The ethnic breakdown of the UK population, derived from the 2001 census - still the latest figures
Total population - 58,789,194 White 54,153,898 (92.1 per cent) All Asian or Asian British - 2,331,423 (4 per cent total) Indian 1,053,411 Pakistani 747,285 Bangladeshi 283,063 Other Asian 247,664 Black or Black British 1,148,738 Chinese 247,403 Other ethnic groups 230,615 Mixed race 677,117 All minority ethnic groups 4,635,296 (7.9 per cent)
The largest group is Indian and they are also probably the most assimilated. There do seem to be problems with muslim groups and assimilation. There are actually more muslims in India than in Pakistan but these figures suggest that only about half of all of these immigrants were muslim.
Perhaps the German experience of muslims is reflected in your question.
No attempt is made to define "abnormal curvature" in the case of bananas, which must lead to lots of arguments. Contrast the case of cucumbers (Commission Regulation (EEC) No 1677/88), where Class I and "Extra class" cucumbers are allowed a bend of 10mm per 10cm of length. Class II cucumbers can bend twice as much....
[That actually conceals the larger 'banana war' primarily between Britain and Germany a decade or two ago where Britain wanted bananas from the commonwealth nations and Germany wanted Costa Rican bananas which are bigger] but I digress again...
...anyway, where people develop shared understanding of certain issues like the shape of bananas, I believe the correct repository for those ideas are world wide institutions like the UN, WTO, etc.
In every other respect, in my idea of a happy life I have as much in common with people from China or The Congo or Venezuela as I do with those from Germany, France and Hungary. We each have our separate idea of governance to which we are accustomed and to which have a greater or smaller adherence, we all have our aspirations to a better world.
'Raving' is not too strong a word. He concludes ...Ban the ECB from not buying the bonds when everyone else sells. Actually, ban the ECB from buying as well, given how it sways the CDS market. Ban clearing houses for even daring to increase margins on risky bonds, to protect themselves and their members — which incidentally affects borrowing costs much more than CDS activity.
Ban Angela Merkel. Ban, ban, ban, until everyone gives up.
Then we’ll be fine.
I can still see the point of banning naked CDS because they are in effect just bets.
#76 Ulkomaalainen ...CDS is in effect insurance against a bond default. If the bond pays out then the CDS is worthless and the transfer of money goes from the CDS buyer to the seller. If the bond fails the CDS seller pays out to the buyer.
In that scenario you don't say but you imply that the bond holder and CDS holder are the same. That is a conventional CDS. Institutions like banks, for instance, buy CDS to protect their bond holdings - it's their insurance against default or serious loss in value by some other means.
You probably know this but naked CDS are when the bond holder and the CDS holder are not the same. The CDS market is, in fact, many times the size of the insured market.
That means there are a great many CDS's out there which are just bets on the direction of travel of risk. I can see that they would give their holders an incentive to distort the market which cannot be a good thing.
It's like someone insuring your house against burning down. You'd wonder why they did it and what they were doing to help it along...
At the end of the Introduction you will find this: Finally, we do not find evidence in favour of the hypothesis that speculation in the CDS market, including the Greek one, is a major force driving the eurozone debt crisis. This does not imply that CDS speculation is not taking place or it does not drive EMU spreads at higher data frequencies. What it implies is that in the longer-term perspective captured by our monthly data frequency, EMU spreads are mainly driven by accumulated intra-EMU macroeconomic imbalances and international risk conditions. Although the latter may improve as global economic activity gradually picks-up, the former is unlikely do so without significant intra-EMU economic/institutional reforms outlined in the concluding section.
They conclude that the reason the crisis happened was that the market was taking too optimistic a view of eurozone sovereign bonds until the credit crunch. At that point they started looking rationally at national economic fundamentals and found Greece wanting. Then the contagion started.
I still agree that naked CDS's should be banned or possibly taxed (like a betting levy) but I believe other CDS's perform a legitimate function in the market.
Note also that they refer to ' intra-EMU macroeconomic imbalances' which I assume means the dominance of the German economy as an exporter.
Incidentally, for Nik; Ellinas; vassilis and friends, the paper is by Michael G. Arghyrou and Alexandros Kontonikas.