Bankers bit the hand that fed them - so why are they allowed to keep biting? Clifford De Souza, is an ex-banker and is quoted in the Financial Times that 'bankers had forgotten what decades ago used to be their prime purpose. “You wanted to get paid well but with a strong view that your job is protecting the bank.' When the world financial system was just about to tip over a precipice in 2006, the FT's Daniel Shafer reports that the average pay + bonuses package for top investment banks was 9.6x the average for the FTSE 100 company. Now the average is 5.8x. For ordinary banks the figure was 2.0x and is now about 1.9x. With the public attuned to the chopping of 'banker's bonuses', guess what? Bankers are now asking what their base salaries will be. A head hunter is quoted as saying that not long ago they wouldn't even know what their base salary was.
How can this be? Why is banking such a money spinner that: 'there is no such limit' ? For enlightenment see this blogpost quoting Dr Andrew Hilton , 'banks like cement makers'.
Prof Richard Werner clearly states how we could resolve this situation in this interview. The situation is succinctly put in another (the YouTube interview on Local Banks):
'...banks weren’t told, when they were given this privilege to create and allocate the money supply: ‘Now go out and do this wisely’. They weren’t told to do that, and of course what they’ve been doing is really just look after their own interests. As it turns out, they can’t even look after themselves, just look at the banking crisis!'
The private allocation of the money supply by banks of all descriptions, given the natural inclination to human greed, ensures predation on the general public. In a fairer system the money supply would be diverted mostly to productive uses. We the public have been doubly duped. Not only do we allow the benefits of credit creation to be in private hands, but having bailed out the banks with public money once, we have signalled to bankers that risk taking in their own cause will be OK for the future. The fact that there is still any multiple in pay+bonus comparisons in favour of bankers shows that no one has changed the rules.
posted by Charles Bazlinton. See also the book The Free Lunch - Fairness with Freedom and the section on crucial differences between two types of occupation: 'Bakers and Bankers'
From an European investment banker:
'The problem is that bankers control their means of production. A farmer can also keep the grain he produces but there is a limit to how much grain this guy can eat. With money, there is no such limit.'How can this be? Why is banking such a money spinner that: 'there is no such limit' ? For enlightenment see this blogpost quoting Dr Andrew Hilton , 'banks like cement makers'.
Prof Richard Werner clearly states how we could resolve this situation in this interview. The situation is succinctly put in another (the YouTube interview on Local Banks):
'...banks weren’t told, when they were given this privilege to create and allocate the money supply: ‘Now go out and do this wisely’. They weren’t told to do that, and of course what they’ve been doing is really just look after their own interests. As it turns out, they can’t even look after themselves, just look at the banking crisis!'
The private allocation of the money supply by banks of all descriptions, given the natural inclination to human greed, ensures predation on the general public. In a fairer system the money supply would be diverted mostly to productive uses. We the public have been doubly duped. Not only do we allow the benefits of credit creation to be in private hands, but having bailed out the banks with public money once, we have signalled to bankers that risk taking in their own cause will be OK for the future. The fact that there is still any multiple in pay+bonus comparisons in favour of bankers shows that no one has changed the rules.
posted by Charles Bazlinton. See also the book The Free Lunch - Fairness with Freedom and the section on crucial differences between two types of occupation: 'Bakers and Bankers'
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