One of the better themes emerging at Davos is how everybody is mad at bankers. Here’s the thinking - First they lose billions and billions of dollars making subprime loans, quite possibly bringing down the economy in the process, then they go and allow some kid trader to lose $7 billion dollars playing with matches, or, er derivatives, or futures or something.
And their bonuses just go up and up.
Heres one comment:
“I’ve got 200,000 employees working every day, many of them in factories, doing an honest job. What I do is about bricks and mortar,” said a senior executive at one of the world’s largest companies, who spoke on the condition of anonymity.
“But when I look at these bankers, I have to say that I’m a bit ashamed for them. There needs to be a little bit more common sense.”
And another:
“Greedy bastards?” mused one head of an international holding company, who declined to be named.
“The guys in the real economy are out there managing factories and supply lines and product delivery. They’re just chasing higher yields.”
That’s not what the companies were saying when the banks were passing out debt like candy, but we now live in different times.
At one session a man identifying himself as a former banker stood up and inveighed against his former colleagues for their greed and their bonuses. He spoke for a while, then stopped. Everyone looked at their shoes, then someone changed the subject.
I think this is a theme that will run and run.
(Ed’s note: James Saft is a Reuters columnist. The opinions expressed are his own.)
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What we really need is regulation. If we regulated corrupt practices at Banks like we protect our economic interests in places like Iraq–we would make a couple of flyovers with F-16 then possibly drop a bomb or two.
Bankers got everything they wanted with new bankruptcy laws which means people like myself have watched my home mortgaged at a value of 100K now having to be mortgaged at 400k– Bankers have also taken over the education loan business which means we get a 3% surcharge and fixed rate of 8.5% with no deferment backed up with a clause that you may never walk away.
They have indeed turned our civilization into the greediest dirtiest game since mobsters ruled the streets–now they rule our banks. Somehow I’ve ended up as a veteran with an MBA working along side illegal immigrants more than any one else. I’m the minority while my counterparts speak spanish and arabic.
Recently my son overdrafted his checking account at college by a total of $36 and received overdraft charges for more than $200.
There is really so little that can be said except to many media powers, judges, executives and politicians have accepted this Globalization God as supreme Judge and he is turning out to be nothing but the devil.
- Posted by Randy Lockdall