Thursday, October 27, 2011

Why Wall Street is being Occupied – in two sentences

Banks and politicians should take the time to ponder this extract (my redlining) from an article by Adreas Whittam Smith in The Independent:

How did some banks become "too big to fail"? Why did their reckless behaviour go unchecked for so long and is it restrained even now? How can their directors afford to pay themselves as much as 500 times the average annual salary of those whom they employ? What explains their arrogance? Why don't they get it?

Andrew Haldane, executive director of the Bank of England in charge of "financial stability", in a speech this week reviewing the development of banking over the past 150 years, which is an illuminating exercise if one is to understand today's circumstances, remarked flatly: "For a century, both risks and returns have been high. But while the risks have typically been borne by wider society, the returns have been harvested by bank shareholders and managers." That, actually, is the whole story in two sentences.

Out of the horse's mouth ...

1 comment :

  1. It is not just the banks, remember the auto industry asking for a bailout and all the executives went to washington in their private jets.
    How about the price of gas and the wild fluctuations, this is pure greed at it's worst.
    How about recessions, this is a transfer of wealth, wealth is like energy it cannot be created or destroyed only transfered.
    The politicans, we do not have enough room to list their abuses and sense of entitlement


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