Skybird
10-18-08, 05:53 AM
... despite the fact that they have crippled the bank system this year and their banks hold up hands to receive 700 billions in aid from tax payers.
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking
Rewards for what? what else does it need to make americans revolting and storm the Wall Street and tear down this totally corrupt system of total immorality and selfishness?
If I were American, I would seethe with anger. Sacking 700 billion in taxes - and wasting 70 billion to pay for loser, dilletants, gambiling predators and selfish criminals who pushed the economy into the greatest crisis since 80 years? Save that money, get some ropes and look for enough light masts - that's what is on my mind instead.
Instead it probably will be accepted - just that no regulation takes place. The government intervening into internal business of private banks? Unimaginable. Better waste another 70 billion in taxes for national parasites.
In an interview with the German newspaper Süddeutsche Zeitung, Frances Fukuyama said that the era of Asia directly financing the philosophy of totally insane level of consumption currently is coming to an end, which will leave america in the need to understand that it cannot carry on like this and will need to tell it'S citizens that they have to consume less and have to save money. China stopping to subsidize the American patient is a scenario that I wanr of since years, and it seems that china feels strong enough now to start abandoning that part of it'S foreign policy, since it has spend enormous efforts to raise altermntaive markets in other parts of the world. back to Fukuyama, since this developement will lead to falling consumption in the US, the inner market will face not just a short recession, but a long phase of structural change (talking of many years here), with all the painful side-effects of a reduction in consumption, unemployment, growing poverty, clöosing industries, etc. At the same time the europeans are no longer willing to accept the model of disregulated finance markets on the international level. While America now is too poor to carry on to consume on tic like crazy, and too weak to wipe the european demands off the table, we will see a shift towards a more regulated, supervised finance trade model. the wealth in america only is with private persons and the established plutocracy of influential industrial and political family clans - the state practically is almost bancrupt with a budget deficit tripling this year and a debt burden of 10 trillion compared to a GDP of 14 trillion. A side -effect will be a further loss of importance of the dollar and a growing pressure from OPEC to switch from dollars to euros - an gone is america's license to print money at will and fuel further inflation that way. Which is something positve, taken for itself.
however the details of future developements, I think it will become an increasingly rough ride for america. Two former colleagues of my father, pnensioneers, who had planned to spend their old age in the US, meanwhile have sold (with losses) their properties in Florida. they said that many old people there from foreign countries have started to sell their properties and investements, and leave the US as well, and no longer wish to hold second domiciles there. An economy guy that I know, recently compared it to a Tsunami heading for the aeican shore - and ameica organizing a beach party for the weekend. On tic, of course. When you have lived your life and are dead, you are not interested in paying back your debts anymore, right?
Today it became known that the aid package by then german government, in potential money surpassing the american bail-out package, includes obligatory demands and conditons for any bank wanting to benefit fro these fonds that by far surpasses any expectation before, and include the opening of the most internal and secret bilances, trading policies, strategy plans, and the state getting the decisive word in what the bank will do and what not. As a result, banks that before were applauding the german move - now all of a sudden are very hesitent to make claims for receiving help. :D Obviously their misery is not big enough, then, and they just hoped to sack some unpayed tax-money for free. But after HRE having lied straightout about it's miserable status while negotiating for aid with the government and other banks, and made big waves by talking about trust and rebuilding trust and trust is what counts, while at the same time undermining thast trust, the government takes no more foolish risks and accepts no promises of good intentions, but insists on checking and controlling the facts. Germany has guaranteed private saving up to a total of over 500 billion Euros, reserved guarantees of over 400 billion Euros to be used in case of banks threatened by collapse, and made an active fond of 80 billion Euros available immediately to increase liquidity in the fiancial trade in a hope of increasing mutual trust between banks that way again. Before, several dozen billions got spend to counter the damage of several individual banks collapsing . for the most, germany is acting preventively here, while the american bail out is a direct reaction to damage already being done. So the German banking system probably can escape a scenario like in the US, but the developement already reaches through to the real industry nevertheless, so that growth for next year at best will reach 0.2%, which means in reality i expect a decrease, plus growing unemployment (official prognosis are always overly optimistic and calculate with the best scenario imaginable) The world bank sees the US already in a recession and germany formally fulfilling criterions for a recession since two following quarters.
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking
Rewards for what? what else does it need to make americans revolting and storm the Wall Street and tear down this totally corrupt system of total immorality and selfishness?
If I were American, I would seethe with anger. Sacking 700 billion in taxes - and wasting 70 billion to pay for loser, dilletants, gambiling predators and selfish criminals who pushed the economy into the greatest crisis since 80 years? Save that money, get some ropes and look for enough light masts - that's what is on my mind instead.
Instead it probably will be accepted - just that no regulation takes place. The government intervening into internal business of private banks? Unimaginable. Better waste another 70 billion in taxes for national parasites.
In an interview with the German newspaper Süddeutsche Zeitung, Frances Fukuyama said that the era of Asia directly financing the philosophy of totally insane level of consumption currently is coming to an end, which will leave america in the need to understand that it cannot carry on like this and will need to tell it'S citizens that they have to consume less and have to save money. China stopping to subsidize the American patient is a scenario that I wanr of since years, and it seems that china feels strong enough now to start abandoning that part of it'S foreign policy, since it has spend enormous efforts to raise altermntaive markets in other parts of the world. back to Fukuyama, since this developement will lead to falling consumption in the US, the inner market will face not just a short recession, but a long phase of structural change (talking of many years here), with all the painful side-effects of a reduction in consumption, unemployment, growing poverty, clöosing industries, etc. At the same time the europeans are no longer willing to accept the model of disregulated finance markets on the international level. While America now is too poor to carry on to consume on tic like crazy, and too weak to wipe the european demands off the table, we will see a shift towards a more regulated, supervised finance trade model. the wealth in america only is with private persons and the established plutocracy of influential industrial and political family clans - the state practically is almost bancrupt with a budget deficit tripling this year and a debt burden of 10 trillion compared to a GDP of 14 trillion. A side -effect will be a further loss of importance of the dollar and a growing pressure from OPEC to switch from dollars to euros - an gone is america's license to print money at will and fuel further inflation that way. Which is something positve, taken for itself.
however the details of future developements, I think it will become an increasingly rough ride for america. Two former colleagues of my father, pnensioneers, who had planned to spend their old age in the US, meanwhile have sold (with losses) their properties in Florida. they said that many old people there from foreign countries have started to sell their properties and investements, and leave the US as well, and no longer wish to hold second domiciles there. An economy guy that I know, recently compared it to a Tsunami heading for the aeican shore - and ameica organizing a beach party for the weekend. On tic, of course. When you have lived your life and are dead, you are not interested in paying back your debts anymore, right?
Today it became known that the aid package by then german government, in potential money surpassing the american bail-out package, includes obligatory demands and conditons for any bank wanting to benefit fro these fonds that by far surpasses any expectation before, and include the opening of the most internal and secret bilances, trading policies, strategy plans, and the state getting the decisive word in what the bank will do and what not. As a result, banks that before were applauding the german move - now all of a sudden are very hesitent to make claims for receiving help. :D Obviously their misery is not big enough, then, and they just hoped to sack some unpayed tax-money for free. But after HRE having lied straightout about it's miserable status while negotiating for aid with the government and other banks, and made big waves by talking about trust and rebuilding trust and trust is what counts, while at the same time undermining thast trust, the government takes no more foolish risks and accepts no promises of good intentions, but insists on checking and controlling the facts. Germany has guaranteed private saving up to a total of over 500 billion Euros, reserved guarantees of over 400 billion Euros to be used in case of banks threatened by collapse, and made an active fond of 80 billion Euros available immediately to increase liquidity in the fiancial trade in a hope of increasing mutual trust between banks that way again. Before, several dozen billions got spend to counter the damage of several individual banks collapsing . for the most, germany is acting preventively here, while the american bail out is a direct reaction to damage already being done. So the German banking system probably can escape a scenario like in the US, but the developement already reaches through to the real industry nevertheless, so that growth for next year at best will reach 0.2%, which means in reality i expect a decrease, plus growing unemployment (official prognosis are always overly optimistic and calculate with the best scenario imaginable) The world bank sees the US already in a recession and germany formally fulfilling criterions for a recession since two following quarters.