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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

What’s this?

You are currently reading 191. Cuomo releases bank bonus report at Reflections on GardenWorld Politics Douglass Carmichael.

meta

%d bloggers like this: