European Central Bank

Maximum representative of the banking system of the old continent was declared the President of the European Central Bank, criticized before the little regulation that they were suffering from the financial markets. Control and adjustment based on equilibrium and banking transparency the current financial products range from simple current accounts, deposits, mutual funds, shares, private to complex products structured warrants, derivatives, fixed income futures, cards, or hedge funds. The first group perhaps doesn’t require an exhaustive control because they govern the maxim of a consideration of money between applicant or plaintiff or speculation in the market value of a company, an organization or a State. The guarantees of a deposit or current account are obvious. Funds and actions are governed in the revaluation of a company that should be audited by a strict commercial regulations. Guarantees for investors in these cases were and are unquestionable. In the second group experience and the current financial situation we show yourself needing an extreme regulation and even the obligation to limit access to any investor.

Logic also obliged the profound reflection in products where we can sell something that we have not yet obtained, ensure a payment with the payment of a debtor for a mortgage of doubtful debts, ensuring a profitability and a warranty on function not guaranteed profits, only provided. No President of central bank, IMF, World Bank or maximum political representative has questioned this lucrative situation until it has hurt their economies and it has reached to cause a global recession. After Trichet other dignitaries will reflect and criticize the financial markets. Inconsistent most of these statements is responsibility that none of them assumes and calls into question. Now it seems that there will be greater regulation and control but the incompatibility with the traditional capitalist model seems to be difficult to overcome. The free market defended in the United States in front of the control of the Lord Another Trichet’s problems that will have to assume the supporters of greater control in the financial market is the confrontation with the even greater economy of the planet: the United States. The Bush Administration has already declared that it atentaria against the rules of the free market and effectively the recovery of its economy is based on giving freedom to investors, companies and financial markets to continue leading the economic control of the planet. The limitation and control would lead to an orderly and linear growth but the balance would cause a redistribution of wealth that would make them uncompetitive. We hope that the statements and wishes of Mr Trichet end up being a reality.

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