Yesterday we reported that nervous Germans are planning on sending spies into the hedge fund world to catch currency speculators.
The plans sound intense. Some basically say it’s a counter-attack on economic terrorism.
So MarketWatch spoke to industry professionals to find out what they think about the news.
Here’s what they said:
“Suggesting such a thing can’t be taken seriously,” said Heino Ruland, equity strategist at Ruland Research GmbH in Eppstein, Germany. “We have enough regulation out there. There is a reason for the euro being weak. The member states are falling apart.”
An anonymous source said it’s “absolutely absurd” to target hedge funds and demonstrates “profound” illiteracy about the role of such funds. “Buying and selling the euro is not illegal. I don’t know how you’d define speculation. I think it’s quite extraordinary [Schaeuble’s proposal].”
“Introducing intelligence agencies to monitor these hedge funds is outright ridiculous,” but stricter regulation of financial markets is certainly coming, Christian Tegllund Blaabjerg, chief equity strategist at Saxo Bank, told MarketWatch.
“There is no reason,” Blaabjerg said, “to set up agencies to follow people along with video cameras.”
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