The analytical part of the report states that the international mobilisation of capital is necessary but bears potential risks and costs. Especially short term portfolio investments are identified as risks. Especially countries with high short term debts are in danger. Incentives for short term portfolio investments by international banks are recognised as risk factors which increase the volatility of capital movements. In this respect the report bids farewell to the illusion of an ideal world of globalisation.
All proposals have in common that they shift the responsibility to the national level.
That is the place where the FSF wants to build the dams and safeguards against the negative effects of the floods of global capital. However, the FSF does not want to influence the extent, speed and direction of the flood. The core problem of the 1.5 trillion US-Dollars that are transferred freely every day, is not touched. With that, the proposals for an improvement of the risk management if implemented at all will lose much of their effect. They will not be sufficient to prevent a speculative attack, because due to an unrestricted growth of international capital flows, actors prepared to take high risks will get greater opportunities.