The New Bogeymen of Financial Capitalism
In today’s global financial capitalism, much attention – and growing criticism – has been focused on the proliferation nowadays of hedge funds, private equity firms, proprietary trading desks, and other private-sector financial institutions. But the emergence of a smaller set of very large public-sector players – sovereign wealth funds (SWF’s) – with implications that are no less far-reaching.
https://prosyn.org/m6UY4Ma
The sub-prime crisis has diverted attention from rising fears about Sovereign Wealth Funds (SWF’s) as the new bogeyman of global finance. But the minute the sub-prime crisis subsides, anxieties about SWF’s will return. For the emergence of this vast and growing pool of state-controlled funds may have implications more far-reaching, and certainly more politically sensitive, than the hopefully temporary distress caused by the subprime crisis.