As the worlds top finance ministers meet in London to discuss the ongoing crisis and try to agree how to curb the risk taking of the bankers who got us into this mess in the first place, it seems clear they will fail. Yes, a few of the ministers want to cap bankers bonuses but most don't think it would work. In any case, says Alistair Darling, we cannot afford to cut bankers pay because if we do they will leave their jobs and go to another country where the gravy train still rolls.
Am I being naive if I ask why we need to hang on to the guilty ones? Wouldn't we have been better off and saved the cost and ignominy of bailing them out if they had left some time ago, before they dragged us all down? Isn't it obvious their greed will lead them to try the same games again if they are not controlled and probably with similar consquences?
Ah, but these people can earn a lot of money for Britain if they are allowed a free rein, say those who defend the status quo. And huge bonuses for themselves merely by shuffling bits of paper, making a few phone calls and putting other peoples cash at risk, say I. But I don't suppose my complaints will change anything. After all, bankers are important to our economy.
But don't you find it interesting that there is no such defence of food producers. We receive modest payments from government for playing a key role in feeding the nation and all hell breaks loose. Much of the time we sell commodities for less than it has cost us to produce them. But does anyone think it appropriate that farmers should be paid big bonuses for the continuity of our efforts, often in bad weather and despite regularly recording losses on the operation?
Not a bit of it. Because food producers are not considered to be as important as bankers.
Comments (1)
What has really gone horribly wrong is noone (including farmers and Bankers) is quantifying the Element of Risk of what they are doing. The element of risk has to have a value which needs to be incorporated into the cost structure of what ever is being undertaken. Further more, the element of risk has to be considered net of tax. If you look briefly at the motor industry in America and England ask yourself how come after 50 years trading a down turn comes and a week later they are bankrupt!!! This scenario is now being faced by all businesses. The profits are not high enough and the tax take is too punitive, noone is quantifying the Element of Risk and adding this into their costings.
Farmers must be very careful what they do next year to plant nothing may be the better option.
Posted by Michael Moore | September 9, 2009 6:31 PM
Posted on September 9, 2009 18:31