The European Union will enhance their students to travel

 

 

 

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Banker Bonuses: Not Such a Wonderful Life?

Astonishingly, bankers may have surpassed lawyers, journalists, and child pornographers as the country’s most reviled people. They did this through a combination of tanking the world economy; extorting money and property from customers and the government; and downright, naked and stupid greed.

Oh, and complaining they weren’t paid enough to do it.

A recent informal Vanity Fair poll indicated 56% of banking greedheads felt their bonuses weren’t large enough. Clearly, this is indicates an IQ so low or hubris so large they shouldn’t be trusted with piggy banks, much less handle your life savings and the wealth of the world.

What’s the Big Deal?
Many have made a big deal about the unfairness of this arrangement. Many have claimed the inequities of the US corporate compensation system is making us into a country of overwhelming class division. In short, many have been right. But the emphasis on class warfare and inequality is only half – maybe less than half – of the picture.

The It’s a Wonderful Life banks of yore were paragons of charity and virtue compared to the ginormous money-maws of today. Despite bankers being beholden to no one other than their hand-selected boards and compensation committees, they make business decisions based on a monthly horizon to enhance their ‘pitiful’ quarterly bonuses. A banker looking beyond a quarter would be locked up in the Insane Banker’s Asylum for the Criminally Greedy. One looking out into the vastness of time – next year – would be executed for their danger to society.

That short-sightedness explains their Nostrasdumbassian inability to have seen the economic crash coming. That blindness to the danger of their own practices screwed their customers, the public – and not least of all – their investors. And now that they’ve good and thoroughly fu*cked their investors, they’re back to the same asinine practices as before, except – like a anitbiotic-immune bacteria – they’ve strengthened and widened the gap between what is legal and what is common sense.

Exercising their much vaunted “skills”, they’ve used taxpayer money, much of which was skimmed off for last year’s bonuses, to ‘reinvest’ and reap near-record profits this year – thereby clinching this year’s bonuses too. The only people dumber than the bankers are their stockholders. They’ve cheered as bankers laundered the money into record profits, either blindlessly stupid or so greedy they don’t recognize this as what it is…a ponzi scheme.

Bernie Madoff must be so proud.

Because they need binoculars to see the ends of their noses, they don’t see that everything will happen again. Their penchant for driving resources offshore to avoid the taxes that comprised last quarter’s stunning economic ‘recovery’ make it harder and harder to extort money from a US government with less and less of it to give. Meanwhile, all those cozy offshore havens – many of which are as friendly to America as a pack of rabid wolverines – are perfectly positioned to nationalize our money to pay for their own bait and switch schemes.

And as the macro-economic robbery continues, the bankers will again be shocked at another “completely unexpected” event. All those jobs that moved or disappeared to make companies more “profitable” steadily depleted the pool of potential customers with money for the banks to steal use to continue the ruination of their Holy Grail – capitalism.

Oh, and that’ll be a $130 million bonus for the trouble.

Where Do I Sign Up?
Bankers – in fact, almost all business US Big Wigs – receive huge bonuses if profits go up or they go down. They receive bonuses from the very companies they ran into the ground to keep their “expertise” with the company. They get bonuses because they successfully lobby each banking reform attempt into a cozier and cozier government/business alliance that – guess what – awards them bigger bonuses. Investors look the other way as long as money is coming into the Ponzi triangle and most complain for show only when the dividends come due and the banks can’t pay them. Then, they angle for a big bonus to pay their wizards of financial acumen to figure out some other way to steal twice as much money – partly used for big bonuses – next quarter.

Many supporters of corporatism über alles claim the execs deserve the big bucks because they are risk takers. The only problem with that axiom is that they take those risks with other people’s money and get paid whether the risks pay off or not.

Unbridled greed is leading them to not only kill the goose that laid the golden egg, but eat the egg, dine on the goose, and steal  their neighbor’s fowl for another mighty fine meal. One paid for with unsustainable bonuses.

Ain’t it a wonderful life?

Cross posted at The Omnipotent Poobah Speaks!

 

 

Banker Bonuses: Not Such a Wonderful Life?

Astonishingly, bankers may have surpassed lawyers, journalists, and child pornographers as the country’s most reviled people. They did this through a combination of tanking the world economy; extorting money and property from customers and the government; and downright, naked and stupid greed.

Oh, and complaining they weren’t paid enough to do it.

A recent informal Vanity Fair poll indicated 56% of banking greedheads felt their bonuses weren’t large enough. Clearly, this is indicates an IQ so low or hubris so large they shouldn’t be trusted with piggy banks, much less handle your life savings and the wealth of the world.

What’s the Big Deal?
Many have made a big deal about the unfairness of this arrangement. Many have claimed the inequities of the US corporate compensation system is making us into a country of overwhelming class division. In short, many have been right. But the emphasis on class warfare and inequality is only half – maybe less than half – of the picture.

The It’s a Wonderful Life banks of yore were paragons of charity and virtue compared to the ginormous money-maws of today. Despite bankers being beholden to no one other than their hand-selected boards and compensation committees, they make business decisions based on a monthly horizon to enhance their ‘pitiful’ quarterly bonuses. A banker looking beyond a quarter would be locked up in the Insane Banker’s Asylum for the Criminally Greedy. One looking out into the vastness of time – next year – would be executed for their danger to society.

That short-sightedness explains their Nostrasdumbassian inability to have seen the economic crash coming. That blindness to the danger of their own practices screwed their customers, the public – and not least of all – their investors. And now that they’ve good and thoroughly fu*cked their investors, they’re back to the same asinine practices as before, except – like a anitbiotic-immune bacteria – they’ve strengthened and widened the gap between what is legal and what is common sense.

Exercising their much vaunted “skills”, they’ve used taxpayer money, much of which was skimmed off for last year’s bonuses, to ‘reinvest’ and reap near-record profits this year – thereby clinching this year’s bonuses too. The only people dumber than the bankers are their stockholders. They’ve cheered as bankers laundered the money into record profits, either blindlessly stupid or so greedy they don’t recognize this as what it is…a ponzi scheme.

Bernie Madoff must be so proud.

Because they need binoculars to see the ends of their noses, they don’t see that everything will happen again. Their penchant for driving resources offshore to avoid the taxes that comprised last quarter’s stunning economic ‘recovery’ make it harder and harder to extort money from a US government with less and less of it to give. Meanwhile, all those cozy offshore havens – many of which are as friendly to America as a pack of rabid wolverines – are perfectly positioned to nationalize our money to pay for their own bait and switch schemes.

And as the macro-economic robbery continues, the bankers will again be shocked at another “completely unexpected” event. All those jobs that moved or disappeared to make companies more “profitable” steadily depleted the pool of potential customers with money for the banks to steal use to continue the ruination of their Holy Grail – capitalism.

Oh, and that’ll be a $130 million bonus for the trouble.

Where Do I Sign Up?
Bankers – in fact, almost all business US Big Wigs – receive huge bonuses if profits go up or they go down. They receive bonuses from the very companies they ran into the ground to keep their “expertise” with the company. They get bonuses because they successfully lobby each banking reform attempt into a cozier and cozier government/business alliance that – guess what – awards them bigger bonuses. Investors look the other way as long as money is coming into the Ponzi triangle and most complain for show only when the dividends come due and the banks can’t pay them. Then, they angle for a big bonus to pay their wizards of financial acumen to figure out some other way to steal twice as much money – partly used for big bonuses – next quarter.

Many supporters of corporatism über alles claim the execs deserve the big bucks because they are risk takers. The only problem with that axiom is that they take those risks with other people’s money and get paid whether the risks pay off or not.

Unbridled greed is leading them to not only kill the goose that laid the golden egg, but eat the egg, dine on the goose, and steal  their neighbor’s fowl for another mighty fine meal. One paid for with unsustainable bonuses.

Ain’t it a wonderful life?

Cross posted at The Omnipotent Poobah Speaks!

 

 

How Bad Is It? Greece, Panic and the Crisis of Confidence

Cross-posted at River Twice Research.

The Greek debt crisis finally spilled over in full force to U.S. markets, aided and abetted by extreme statements emanating from such esteemed and prominent voices as Muhammed El-Erian of the large bond investor Pimco, who warned that Greece could be just the beginning of sovereign debt catastrophes. In the space of minutes, the major U.S. indices plunged more than 10%, fueled by the same programmatic electronic trades that were part of the battering in late 2008 into 2009. And then in the space of 15 minutes, they recovered, without – it’s fair to say – much human decision-making during that interval (and if an individual even tried trading during those 30 minutes, they would have found it difficult or impossible, as web sites such as schwab.com were completely overwhelmed with traffic).

 

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Weekly Mulch: Climate Change On Obama’s Back Burner

By Sarah Laskow, Media Consortium Blogger

In his first State of the Union address, President Barack Obama touched on climate issues only briefly. He called on the Senate to pass a climate bill, but did not give Congress a deadline or promise to veto weak legislation. Nor did he mention the Copenhagen climate conference, where international negotiators struggled to produce an agreement on limiting global carbon emissions.

The Obama administration’s attitude towards climate change still represents a remarkable shift from the Bush years, when global warming was treated as little more than a fairy tale. But in the past year, Congressional squabbling has stalled climate legislation, and international negotiators nearly gridlocked in talks over carbon admissions at the multinational Copenhagen conference. Without strong leadership from the president, work to prevent this looming environmental crisis will stall.

Obama did address global warming skeptics, saying that they should support investment in clean energy, “because the nation that leads the clean energy economy will be the nation that leads the global economy.”

“And America must be that nation,” Obama said.

No push for climate bill

Despite his combative language,  the president did not challenge Congress to push for real solutions to ballooning carbon emissions and energy consumption. As Forrest Wilder of The Texas Observer notes, Obama “uttered the phrase ‘climate change’ precisely once.”

The Senate has already wait-listed the climate bill: Health care came first. With health care reform now in line behind work on jobs and bank regulation, climate legislation has little chance of passing the Senate in the coming months, let alone making it to the president’s desk.

If Congress lets this work wait until after the midterm elections, the United States will show up at international negotiations in December 2010 as a leader in carbon emissions yet again, but with little in hand to show a way forward.

Clean energy, not renewable energy

When the president did bring up climate issues, he focused on their connection between climate reform and potential job creation. Obama highlighted areas for growth, not in renewable energy fields like wind or solar power, but in nuclear power, natural gas, and clean coal.

Yes, these fuel sources could decrease the country’s carbon emissions. But they are not solutions that will revolutionize energy production. Grist’s David Roberts was floored that the speech omitted renewable energy entirely and kowtowed to a more conservative litany of energy projects. “I suppose it was done to flatter conservative Senators that will have to vote for the bill Kerry, Lieberman, and Graham are working on,” he writes. (The three Senators are working on a version of the climate bill designed to appeal to Republicans.)

“But the SOTU is not a policy negotiation,” Roberts says. “It’s a bully pulpit, a chance to shape rather than respond to existing narratives.”

Roberts argues that progressive supporters would benefit from a stronger message. If activists knew that the White House stands behind a real shift in America’s energy policy, they could use that prompt to drive action on climate change.

What was missing

While touting the virtues of off-shore drilling, Obama overlooked other policies that could broker real change. Although he admonished Congress to pass a climate bill, he did not pressure the legislature on what he’d like that bill to include. He did not mention cap-and-trade, the mechanism the House bill relies on to tamp down emissions and dirty energy use.

President Obama did touch on transportation reforms that could decrease the country’s use of fossil fuels.

“There’s no reason Europe or China should have the fastest trains,”  Obama said. He cited a high-speed rail project that broke ground on Tuesday in Tampa, FL, as evidence that America could best the rest of the world in creating new energy-efficient technology.

But one or two high-profile projects won’t be enough to challenge Europe’s network of high-speed trains or China’s investments in solar power. The White House could put the country at the forefront of sustainable technologies, but it’ll take more money than the president has committed. In AlterNet’s ideal state of the union, projects like the railway would merit sustained attention and funding. Funding for the high-speed train came from this year’s stimulus bill, and there’s no guarantee that similar projects will find federal funding in the future.

“Continued support is still needed” for green jobs and clean energy, Alternet’s editorial staff argues. “It’s unclear yet how Obama’s new proposal for a three-year spending freeze will apply to this sector, but a boost is what is needed, not cuts.”

Green jobs

Michelle Chen argues for In These Times that the president is right to subordinate climate issues to economic policy. “The jobs angle is more than sugar-coating,” she says. A recent Pew Research Center poll put climate change at the end of Americans’ long list of cares, and a Brookings Institution study found that they’re no longer willing to pay as much for greener products.

Jobless workers need green in their pockets most of all, and so far politicians’ promises haven’t made up for the slack economy.

“No matter how slick the marketing, confidence in green jobs may wilt even further absent real investments in the beleaguered blue-collar workforce,” Chen writes.

Copenhagen accord losing momentum

The small role that climate change played in the state of the union address only emphasized the downward momentum of the issue since the United Nations conference on global warming in Copenhagen. Grist’s Jonathan Hiskes talked to six leaders in climate change activism, and none of them offered a different strategy than they had last year.

That same stasis is showing up in Europe, as well. Spain, which currently leads the European Union, proposed that the European Union’s negotiating position should remain the same as its position before the Copenhagen conference, according to Inter Press Service.

Sen. John Kerry (D-MA), who’s working on climate change legislation in the Senate, offered advice to climate activists at a clean energy forum in Washington, DC on Wednesday. Mother JonesKate Sheppard reports that Sen. Kerry encouraged his audience to get angrier, louder, and more active, in the mode of the conservative Tea Partiers, who have earned plenty of attention. After his speech, he also recalled the tactics that pushed landmark legislation like the Clean Air Act through Congress.

If climate change is going to play a larger role in the next state of the union, the citizens and groups concerned about this issue need to do something to put it on the agenda. Otherwise, next year, the president may find it just as easy to skim over it again.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

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