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Swiss bank disclosure: killing the hydra?

A major tectonic shift in money flow and black market economies

A simple statement, a confession, made under immense duress to survive: but what an impact it will have on the banking systems world over and huge, more-than-you-can-imagine impact on the financial markets and criminal behavior. UBS under tremendous pressure to survive the life draining losses of last year has agreed to (or close to agreeing, depending on which news article you read) to reveal the account detials of its secretive holders. The problem for these biggie holders is that they have to now:

  • Holders will have to churn their portfolio i.e. take the money away and stash it somewhere else
  • Invest or hide the money in different (and hidable) formats. [Gold bugs have known something for a long time now hmmm]
  • Is the money going to other safe havens OR would other safe havens also open up (or forced to open up) after Swiss disclosure
  • This has undoubtedly triggered a wave of new scams that will brew over next years or may be decades
  • What happens to the black-economy, where will the center of gravity of black market economy shift to?
  • Where will the money flow to? Real estates? Commodities?
  • Corrupt politicians will have no incentive to make the system transparent, or even be tensed at this revelation
  • Will money shift to Agriculture or environmental projects, where it is difficult to track the investments?

Figments of imagination? Yes but not far fetched.

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