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Showing posts from June 26, 2007

Going after Blackstone

Business Times - 27 Jun 2007


New financial system faces political backlash

Most recent example is the efforts by US lawmakers to squeeze more tax money from Blackstone

By LEON HADAR
WASHINGTON CORRESPONDENT

ECONOMISTS have been celebrating the remarkable expansion in the financial system in recent years and the way it has been revolutionising the global economy. They are tying to figure out how the explosion in and globalisation of finance and the creation of new financial assets and emergence of new financial players have been transforming the global economic landscape.

It has, for example, accelerated the liberalisation of the global financial sector, and in the way business is done by creating incentives for takeover and mergers.

Many economists agree the forces of the new global capitalism - their most revolutionary players being the managers of equity and hedge funds - have made the process of wealth creation - the main task of the market economy - more efficient and productive.

H…