There seems to be no let up from the tidal wave of international legislation in the pipeline this year from both sides of the Atlantic, targeting the financial services industry. Senators Carl Levin and Kent Conrad’s newly passed Highways Tax Bill and the Foreign Account Tax Compliance Act (FATCA) are the ...
At Cayman Finance, we’ve been watching the United States presidential election carefully, and observe the disappointing, though somewhat predictable, distortion of the facts by some US politicians and media, regarding the financial services industry in Cayman.
Now that the US election is over, the focus in Washington has moved to the US’s budget deficit and its “fiscal cliff”. At press time, it’s uncertain whether the US will jump off of the cliff, or find a solution which involves restructuring taxes and spending.
Economists, of which I confess to be one, always create models based on a number of assumptions to explain behaviours of the markets. So far so good right? But the problem is more often than not these assumptions are beyond the realm of the possible, and due to a failure to create better models, we end up accepting the only available models and forget the assumptions on which it was built.