What happens when you lynch bankers?

Every calamity in human history tends to have a corresponding scape goat. Often in financial busts it becomes xenophobic, race often plays a strong role, the US Civil war was as much about the dichotomy of the Northern and Souther economies as anything else, while slavery was front and centre it was the fundamental economic difference between a plantation system in the south and a rapidly industrialising economy in the north that helped to draw battle lines. In fact, your average southerner wasn’t a white slave owner, they were a poor white farmer who only made about enough to live on.

In the 1980’s Ireland blamed single mothers, I was still in Los Angles and there the popular blame was against Mexicans. The blame game is nothing new. In the early 1300’s during the Great European Famine they blamed bakers and millers, the Parisians went so far as to tie them up and publicly whip them, the real enemy in that instance was mother nature who delivered three summers of rainfall that caused crops to fail, but you can’t lash …

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Things are gonna change 'round here.

The banking sector is in for some big changes, today we will consider some of ‘what may be’, this article is taken with a view of looking at some of the results that could come out of the current financial market.

One brief mention is deserved for out all time low-popularity bankers. I am not banker, but I do have some understanding of the financial systems which is what forms my opinion… There are people calling for the government to cap the wages of bankers. We should not have government officials decide their wages, as bankers never decided government wages despite pay rolling the state for years during the upturn. Banks and credit flow are the basis of modern society, lack of which is one of the hallmarks of second and third world countries.

If politicians want to make a true difference they should cut their own wages, its seems ludicrous that our Taoiseach earns more than the President of the USA. And if they want to challenge them on the grounds that financial institutions ‘brought the country down’ it …

Read More →

Things are gonna change ’round here.

The banking sector is in for some big changes, today we will consider some of ‘what may be’, this article is taken with a view of looking at some of the results that could come out of the current financial market.

One brief mention is deserved for out all time low-popularity bankers. I am not banker, but I do have some understanding of the financial systems which is what forms my opinion… There are people calling for the government to cap the wages of bankers. We should not have government officials decide their wages, as bankers never decided government wages despite pay rolling the state for years during the upturn. Banks and credit flow are the basis of modern society, lack of which is one of the hallmarks of second and third world countries.

If politicians want to make a true difference they should cut their own wages, its seems ludicrous that our Taoiseach earns more than the President of the USA. And if they want to challenge them on the grounds that financial institutions ‘brought the country down’ it …

Read More →

The ECB won't cut rates? A central bank doing exactly what it should.

The Fed is still trying to bail out the US economy, there must be a fundamental belief there that a recession is the worst thing in the world. Personally I would feel that the 1,000,000 lives lost in Iraq outweigh the damage a recession might do but for some reason the efforts to end the war pale in comparison to what politicians and policy makers are willing to do to avoid an economic downturn.

Bear Stearns was bought for $2 a share by JP Morgan Chase, their stock price was about $38 recently, and the money to do the bailout was Fed backed. In fact the Fed is evoking laws designed during the great depression to lend direct to banks.

The USA has recession aversion, it’s almost like the economy there is one giant dog dry heaving to Pavlov’s recession bell. The issue is that the budget still has to be met, these bailouts cost money and the money …

Read More →

The ECB won’t cut rates? A central bank doing exactly what it should.

The Fed is still trying to bail out the US economy, there must be a fundamental belief there that a recession is the worst thing in the world. Personally I would feel that the 1,000,000 lives lost in Iraq outweigh the damage a recession might do but for some reason the efforts to end the war pale in comparison to what politicians and policy makers are willing to do to avoid an economic downturn.

Bear Stearns was bought for $2 a share by JP Morgan Chase, their stock price was about $38 recently, and the money to do the bailout was Fed backed. In fact the Fed is evoking laws designed during the great depression to lend direct to banks.

The USA has recession aversion, it’s almost like the economy there is one giant dog dry heaving to Pavlov’s recession bell. The issue is that the budget still has to be met, these bailouts cost money and the money …

Read More →