This week's European Economic Experts Panel statements:
A) Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would result in significantly less short selling.
C) Regulatory restrictions on short selling - such as no naked shorts, temporary bans in times of crisis - make it difficult for optimists and pessimists to have equal influence on asset prices.
Keyword: asset valuation
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This week's US Economic Experts Panel statements:
A) Bans on the short selling of financial securities, such as stocks and government bonds, would lead to prices that are further, on average, from their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would improve the accuracy of stock prices.
In January this year, Senator Elizabeth Warren unveiled a proposal to tax the wealth of the richest 0.1% of Americans. The proposed legislation to tax households with a net worth of $50 million or more draws on analysis by one of our US panel of economic experts – Emmanuel Saez at Berkeley – showing that the richest 0.1% has seen its share of American wealth more than triple from 7% to 22% since the late 1970s. Saez and colleagues have also made calculations of the potential impact of Senator Warren’s proposed tax.
This week's IGM Economic Experts Panel statements:
A) A bitcoin has a fundamental value of at least $1,000.
B) The best forecast for the value of one bitcoin in 2 years is its current price.
This week’s IGM Economic Experts Panel statements:
A. The way in which money market funds normally trade – at one dollar per share, even though the per-share value of the assets backing them varies over time – made them vulnerable to a run in 2008 before they received taxpayer guarantees.
B. Taxpayers would be better protected if each money market fund in the U.S. were instead required to trade at its floating net asset value.
C. In the absence of floating net asset values, taxpayers would be better protected if each money market fund in the U.S. were required to set aside capital to protect against losses while holding back a portion of shareholders' cash for a time when they seek to withdraw all of their money.
This week’s IGM Economic Experts Panel poll statement:
Bans on the short selling of financial securities, such as stocks and government bonds, lead to prices that are further, on average, from their fundamental values.
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