40% of the Australian market is owned by foreign entities

[skyQuake]

I remember someone posting a link to an asx pdf a little while ago, but search has yielded no results.

Anyone have the link to that pdf?

Thanks

 

[Aussiejeff]

I remember someone posting a link to an asx pdf a little while ago, but search has yielded no results.

Anyone have the link to that pdf?

Thanks

Try this skyQuake...

http://www.rba.gov.au/publications/bulletin/2010/sep/pdf/bu-0910-4.pdf

The extent to which our financial & bond market has become manipulated by foreign entities over the last 5 years is a bit frightening. Remember, as quick as they may pile value into our market to make things all rosy, they can also withdraw that value rapidly when it suits THEM (not necessarily our gummint or Treasury), potentially causing serious volatility in our financials.

Comment?

 

[skyQuake]

Thanks.

Those foreign entities must have done well - 50% rally in equity mkts and an 80% appreciation in currency!

 

[skc]

Try this skyQuake...

http://www.rba.gov.au/publications/bulletin/2010/sep/pdf/bu-0910-4.pdf

The extent to which our financial & bond market has become manipulated by foreign entities over the last 5 years is a bit frightening. Remember, as quick as they may pile value into our market to make things all rosy, they can also withdraw that value rapidly when it suits THEM (not necessarily our gummint or Treasury), potentially causing serious volatility in our financials.

Comment?

That's why we should have a tobin tax... 2bps will do.

 

[Knobby22]

That's why we should have a tobin tax... 2bps will do.

Interesting concept. From Wikapeadia below:

"A Tobin tax, suggested by Nobel Laureate economist James Tobin, was originally defined as a tax on all spot conversions of one currency into another. The tax is intended to put a penalty on short-term financial round-trip excursions into another currency.

Tobin suggested his currency transaction tax in 1972 in his Janeway Lectures at Princeton, shortly after the Bretton Woods system of monetary management ended in 1971.[1] Prior to 1971, one of the chief features of the Bretton Woods system was an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold. Then, on August 15, 1971, United States President Richard Nixon announced that the United States dollar would no longer be convertible to gold, effectively ending the system. This action created the situation whereby the U.S. dollar became the sole backing of currencies and a reserve currency for the member states of the Bretton Woods system, leading the system to collapse in the face of increasing financial strain in that same year. In that context, Tobin suggested a new system for international currency stability, and proposed that such a system include an international charge on foreign-exchange transactions."