Crisis - what crisis

Discussion in 'The Intelligence Cell' started by scrofula, Oct 24, 2008.

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  1. On CNN last night it was stated that 5 top US banks, including Citibank and Morgan Stanley have collectively reserved nearly 62 billion dollars ( Citi alone 25 billion) for bonuses. Do I detect the ammonia smell of urine being extracted somewhere?
  2. I'm waiting for a bunch of bankers to run into shot during a live TV broadcast, and all shout WAAAAHHHHHH!
  3. Got any links? Bonuses funded by tax would be a complete smack in the face to workers struggling to pay bills.
  4. I think we are going to need a second outrage bus.
  5. Here's a direct cut from the (lengthy) transcript of the programme

    REP. DENNIS KUCINICH (D), OHIO: The banks and these other firms feel that they can just take this money and distribute it for bonuses? Are you kidding me? I mean this -- this goes beyond unfair. This is an outrage.

    TODD: Congressman Dennis Kucinich is asking his staff to investigate how widespread this is. We were able to get figures for four major banks. Goldman Sachs had set aside $13.5 billion through the third quarter for pay packages. At Goldman, that averages out to more than $414,000 per employee. Morgan Stanley has accrued $10.7 billion through three quarters; Merrill Lynch, $11.2 billion; and Citigroup, which has an investment and a deposit bank, has set aside more than $25.8 billion.

    Total -- more than $61 billion set aside in salaries and bonuses for the first three quarters. At three of the four, those numbers are down from the same period last year.

    Contacted by CNN, representatives of all four denied being irresponsible with the government's money. Some said their top execs didn't take bonuses last year. Others said they're cutting costs and laying off people. Merrill Lynch said some of this money is performance-based. But with performances that led to a financial crash, some compensation experts try to put the outrage in context.

    PROF. KEVIN J. MURPHY, UNIVERSITY OF SOUTHERN CALIFORNIA: If they can't pay them in form of bonuses, they'll pay them in the form of salaries. If they can't pay salaries, they'll find some other way to pay them. And if they can't find another way to pay them, they will lose their top talent to hedge funds, private equity or other unrestricted markets. And that's going to be bad news for taxpayers, for shareholders and the financial markets.

    ....and here's a linky thing if you want to plough through the whole lot
  6. Can we afford to run a second outrage bus?

    The price of fuel looks set to go up again and also now that most insurance companies seem to have taken a bashing recently they are certain to hike their premiums to maintain their profit margins.
  7. An outrage train might be a better idea, steam driven...might even get a gubment subsidy and an EU eco grant!!!!
  8. Sorry to provide a bit of "balance" here, but the senior execs of one of the larger global banks (DB) have voluntarily given up their bonuses this year, despite not getting a government bail-out. I'm afraid though that if this is meant to encourage others it isn't doing so. The whiff of ammonia is certainly there!
  9. Nah, the best one was an ex telling me how "Ooh, the banks are trying to help us, and it hurts them". This is due to her father being some HBOS geezer, so she then has access to all that etc, etc.

    My gobsmacked silence at that, apart from my jaw hitting the floor, was all she needed to move swiftly onto another subject before i subjected her to the "You might think thats the case, but thats absolute ballacks, you daft cow, and here's why..." which would have come after i'd exited from me coma of unbelief.

    And this is damn well outragous.

    Hmm, perhaps we need to get an Outrage Aircraft Carrier... Means we can drop bombs of firey outrage on the infidels... :twisted:
  10. Cheers for the link, I will read it later. As to my largeing. FFS, it is their "top talent" that caused this.
  11. Yes, I particularly liked the bit about 'bad for taxpayers' myself. Unlike paying untold billions to bail out the very dicks who got us in this mess in the first place, of course.

    What gets me is the whole stated purpose of handing this money over was supposed to be to free up liquidity in the lending market. They can hardly lend it if they've salted it away in their own bloody mattresses. So much for letting the market correct itself. These bastards just don't feckin well learn, do they?
  12. Perturbed and thinking exactly !!! I'm not a dab hand at doing bold on quotes (yet!) but...erm, hedge funds, weren't they the cnuts who more or less kicked this off, and who should immediately have been legislated out of existence and into prison the moment the enormity of this became remotely clear??? I'll have an attempt at giving my ( pathetically unclear as of yet) take on reading what is really going on when I've tucked into a couple of my Friday afternoon brews....!!!
  13. greed and avarice is at the heart of the city regardless of which continent, if we believe that banking is for the common good then we fool only ourselves.

    They are a necessity however, but the cross over of commercial and investment banking once regulation's where changed will never allow any stability, until it is re-regulated and separated once more, however in all the rescue packages which have been put together will not address this underling issue.

    Banks and banking, i am afraid i don't trust them to see further than the next fat bonus they can take.
  14. So…..a load of bankers work out that they can screw the “middle class”, who in their eyes had too much fluid cash, by giving money to the underclass to get housing ( retrievable assets), pumping up their – the banks - value, spiral, spiral. Then, when it all crashes, get the underclass and the middle class to pay, via taxes. Er, wait a mo, gubment expenditure is already overstretched, see California for example, so tax doesn’t already cover existing outgoing, so what are they going to cut to cover the buying of crap (?) [ see original bit of this post] banks and also do their usual civic duties? In the middle are the arguments of the dissemblers who walk away laughing. I still haven’t got the totality ( as they say in this part of the world) of this. Why are people not wandering down to the City and aimlessly kicking the shoit out of some of these people?
  15. I'll put in a order for HMS Outrage, I'm sure that cnut running the country will sell it off for a fraction of what it will cost to build.