191. Cuomo releases bank bonus report
August 3, 2009 § Leave a comment
Fascinating reading,via ATTORNEY GENERAL ANDREW M. CUOMO RELEASES BANK BONUS REPORT
but the question remains, what to do? Regulation is a counter pressure to what happens if not regulated, but there will be regulators, and some measure of corrution or misperception. The human problem is, these guys are not guilty. Most of us rationalize what we get. For example, compare your earnings/wealth to that of a farmer in bangaladesh. That is the same (lack of making a) comparioson that fails to affect the bankers, just as it does us. People adapt to circumstances and that includes taking addvantge of opportunities. In the bankers’ case, there is the model ofthe salesman’s commission, so if I sell ten billion, shouldn’t i get five percent?
So it remains hard to know what to do. Regulation to control bonuses seems late. Better is higher reserves on bnaks, restricing banks to direct loans only, not being able to sell those loans to other banks . The counter argument is that those loans create the credit that has driven the economy. Yes, but. It also takes us away from a focus on the quality of goods and services to focus on the profit on the loans to those saps who are left making the goods and services. .
So the quetionmight be – are we going to jump step to a simpler economy or, gad, jump step to an eveen more complex one? I bet on the second.