Please note that it is your government that is making it so difficult for the rest of the world to do business with you that they rather chose not to. Main stream business. Read the names in that list. It's just easier and you simply don't have that much money anymore. The wealth is in the east now.

If you guys don't catch this and fix this, your future is bleak indeed.

There's also a hint of protectionism here, on 2 levels.

1. The incumbent American banks having no choice but to be compliant, have their revenue increased from American investors exiting (or being rejected) from non-compliant non-US banks. Of course, it can construed that being compliant is an open choice, however, it is a choice where the foreign bank has to consciously decide to pick customers whose profit margin generated is less. And any business that chooses increased revenue over better margins is typically in a bad situation, where it needs to cover fixed costs more than increase its profits. So basically American banks benefit from this legislation.

2. If it is difficult to invest in non-US assets, where are American tax residents going to place their funds in? So basically America benefits.

All in, quite smart, but strongly hypocritical.

This is an example of the fallout to be expected.

Facebook Co-Founder Saverin Renounces Citizenship
http://www.cnbc.com/id/47389619

I imagine it will be difficult to force anyone to do so. On threat of incarceration? Wouldn't really matter if you are already a citizen of another place.

I suppose if it is labelled a crime and if the new residential country has a extradition treaty with the US then it might be possible. But I think it would be a stretch.

And Saverin was from Brazil to being with.

How typical of government these days...the BIG guys are allowed to do the damage, often in bed with the government, but the little guy pays the price time and time again. Why on earth American's are prohibited from trading Gold and Silver, for example, is just beyond my comprehension. How did the free enterprise centre of the world become the nanny state it is right now? It is an insult to America's forefathers!