IMF Chief Promotes a Bank Tax... Only On the Countries With the Most F%^*ed Up Banks
It's classy that the IMF will not specifically say which countries he believes should pay a "bank tax" because just saying that it should be the ones that imploded the economy assumes that he is at least referring to America and that's all we care about. Anyway. Damn.
Countries that weathered the global economic crisis with their financial systems relatively unscathed are being shortsighted by opposing a global bank levy, the IMF's chief said on Saturday.
International Monetary Fund Managing Director Dominique Strauss-Kahn suggested a bank tax would be helpful in preparing for crises that could strike anywhere and indirectly criticized countries that might think they would never feel the brunt of a downturn.
"The countries ... which are likely to implement (a bank tax) are the ones having had problems in the banking sector," Strauss-Kahn said. "The others say, 'We didn't have a problem so we're immune.'"
"Maybe it's a bit shortsighted," he added, without naming any countries. Canada has taken a lead role in rallying opposition to a tax on banks, and anti-poverty organization Oxfam zeroed in on it for that stance.
Again, you don't have to be explicit to get your point across.
There should be more spanking in banking (tm Minnesota Fed, pretty much) but I'm not sure the IMF is the place to get useful regulatory suggestions seeing as how their business model is essentially to bury nations in mountains of debt. Under the guise of help. A bank tax comes wrapped in the same shiny packaging and is, conveniently, endorsed by the guy whose job it is to push as much debt as possible.
Jamie Dimon has already threatened retaliation; not against the regulators but the consumer (excuse me, motherfucker, I use your bank, don't fuck with me) and that means a heavier debt yoke to carry for piss poor America. Or Canada. Or to whomever Strauss-Kahn is referring.
Be wary of solutions tied with these bows.