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!

 

 

Obama's Project: Making Thin Ice Safe

Those with an investment position betting on the Dow Jones Industrial Average plummeting to say 6,500 (it's at 8,131 now), should read Alexander Cockburn's piece in CounterPunch and be happy. Not the rest of us.

Consider the recovery project facing Obama in saving the world economy and the words gargantuan and humongous come to mind, analogous to constructing a snow fortress on thin ice on a central Wisconsin lake during the early Autumn. [Lots of unknowns and ambiguity; we don't know what to do, why and whether it will work.]

There's more...

Trade on the (campaign) trail

I'd like to introduce a new series called Trade on the Trail, each Friday bringing you what candidates have said on the campaign trail about trade that week.

Cross posted at www.eyesontrade.org.

Former Sen. John Edwards (D-NC) released a statement on NAFTA trucks:

The Bush administration has allowed multinational corporations and their Washington lobbyists to jeopardize American highways and streets. They are putting profits over safety and pushing through this program without regard for the impact on the environment or the safety of America's workers and families. As president, I will enact smart trade policies that put workers, wages and families first.

Sen. Hillary Clinton (D-NY), according to the Washington Post,"told students in New Hampshire this week that she hated 'seeing U.S. telemarketing jobs done in remote locations far, far from our shores.'"

Also, a Clinton spokesperson said to the The Sun News (Myrtle Beach, SC),

The senator wants NAFTA and other trade deals "consistently monitored and evaluated."

She wants to make sure that our trade deals expand, not reduce, the number of good-paying, middle-class jobs and raise, not lower, American wages.

And Gov. Bill Richardson (D-NM), also reported in The Sun News,

"Look, I voted for it [NAFTA]," Richardson said in an interview after his speech to the union leaders in McCormick. "I'm not apologizing for it. We thought the standards on environmental protection, on worker's protection would be strong. They were weak."

And in the polls:

Politico comments on a Quinnipiac poll which tested how the candidates would do in Ohio. Apparently, they were surprised by the no more NAFTA fervent that was the same in all tested demographics (maybe they forgot to read our Election Report?),

Along with Michigan, Ohio has been the state perhaps hardest hit by job losses due to foreign competition. Although Republicans are slightly more supportive of free trade than are Democrats or independents, even within GOP ranks there is clear resentment that Ohio's prosperity is being sacrificed to foreign competitors.

For instance, when Ohio voters are asked whether they think the U.S. economy would be better off if the nation continues its current trade laws or increases restrictions on imported goods, by a 60 percent to 30 percent margin they pick the latter. Even Republicans want new restrictions on imports, by a 55 percent to 35 percent margin...

...Only 21 percent believe the growth of the global economy has helped the Ohio economy, 30 percent think it has helped their families' bottom line, and 30 percent say it has helped the U.S. economy.

And that's it for this week's Trade on the Trail.

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