Ulf Dahlsten

Ultimately this is all about accountability: we need a financial sector that is accountable to the real economy—one that adds value, not destroys it.

1950 1952 1955 1957 1960 1962 1965 1967 1970 1972 1975 1977 1980 1982 1985 1987 1990 1992 1995 1997 2000200220052007 2010

In the 60’s each additional dollar of new credit led to 59 cents in new GDP in the US, during the 00’s only 18 cents

Only 6,5 % of the capital invested 2005-2011 by private equity funds was used to add capital to the companies

The volatility on the stock markets is blocking the possibilities for equity financing

There is an emerging equity gap. McKinsey has calculated that European companies will lack 3 trillion dollars in equity by 2020

Eoropean bank assets in relation to GDP

Going from 600 000 to 85 000 000

The Chicago Plan (Kumhof)

Capital flow controls

Weighted liquidity buffers (Basel)

Tobin tax

Innovative regulations

Developed bonus systems

Separate investment banks from retail banks

Break up the “mega-banks”

Reintroduce partnerships for investment banks

Recreate local banking

Develop the corporate bond market

Develop alternative monetary systems (Lietaer)

“Regional reserve currencies” – the USD, the EUR and the RMB.

Chinese proposal: A new global reserve currency

• No need

• A global democracy

• Create an international legislator for the global market economy

• Stop globalization – delocalize!