[Marxism] Hedge funds

Sabri Oncu soncu at pacbell.net
Wed Jul 21 14:36:01 MDT 2004


Jurriaan:

> However, it's not clear to me that such regulation would 
> prevent other legal or semi-legal constructions to avoid 
> inspections, or prevent hedge funds from operating offshore 
> in a less regulated environment. 

As long as the current mode continues Jurriaan, we are in agrement. However,
I expect that in the next decade we will see tighter controls of
cross-boarder capital flows. You are right in saying that "sooner or later,
legislation changes
to accommodate the real mode of accumulation" but if the real mode of
accumulation starts to destabilize the system as a whole to the point of
chaos, interventions by various parties who realize this occur. At times, to
the point of the other extreme. I do not have at hand historical details of
the global financial markets in the period between 1870s and 1930s
(borrowing one of your words, the previous "financialization" period) but,
as we all know, it came to an end. The current "financialization" period,
which probably started in 1973, if not in 1971, may come to an end too. If
that happens, then it will not be profitable for the hedge funds to operate
from offshore.

Mine is just a subjective forecast of course. But my sense is that the
pendulum started to swing back. We will see how far back it will go.

Best,

Sabri





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