The Panama Papers. This is an interesting developing story. Many people’s initial reaction will be that of surprise. Frankly, I’m surprised that people are surprised – wait, no I’m not. For anybody in the financial world, this is a Duh moment. Of course rich people are hiding money offshore. These people are either smart, or have smart people working for them who manage their money and know that American and Western European banks (most, not all) are bunk. The banks that most people keep their money in are under capitalized (that means that they don’t have your money). Not only that, but they are under insured for loss (remember the bailouts). These big banks are also corrupt as hell (see 2008).
If I had millions or billions of dollars, I’d keep them offshore as well. In fact, I recommend that everyone have an offshore account in a “tax haven”. These banks in so called tax havens actually pay interest! What a novel idea!
Also, living in an extremely litigious country like the good old US of A, I am forever fighting the statistical probability that I will be sued for offending a field mouse with hateful rhetoric.
Money kept offshore can be made harder to get by the blood sucking lawyers. It is a good insurance policy.
All that being said, I hope that the big dog criminals and politicians get locked up (but I know that will not happen).
CNN, FBN, FOX, CNBC, and The Guardian will all report this story; they will follow it for a few weeks, and then it will fade away.
A few bones will be thrown to the public to chew on.