Sniff
On 2012 June 16th, the Friday before the latest Greece election, DAX closed at 6229.41 points. Today, 33 days thereafter, DAX closed at 6758.39 points. That’s beefy 8.45% up in 33 days! What have happened during the 33 days?
- Greek people have chosen a new government, which saved the EU from falling apart too soon. However, before long many officials on critical positions resigned.
- Merkel’s EU policy was not popular during the EU summit.
- Spain is in deep debt trouble.
- The Libor scandal.
Under such circumstances, this 8.45% up isn’t quite comprehensible to me. Any idea, please?
Sneeze:
We IT crowds should be very grateful to the regulation committees sitting in Zürich. Thanks to Basel II, Basel 2.5, Basel III, Solvency II, etc., etc., every and each financial institute in Europe is under tsunamis of report filing requirements and number crunching responsibilities. They can no longer sleep well without “deep cooperation” with us. We would just have endlessly much to do with the regulations and numbers.
My question is, in how far could these complicated regulations help in preventing financial crisis? I heard that 75% of all the taxation literature published in the world are from Germany. Because here we have very complicated tax rules. A normal person usually has to resort to Steuerberater (tax accountant) for annual tax filing. Do those tax rules do us good? I do not know. People hate the complexity. I heard that senior professionals with decades of working experience in Bundesbank in Berlin did not know what to do with the new reports and numbers submitted by banks and insurers. There is already a stack overflow. I agree to an opinion: simpler but hard, well obeyed rules could do better.
