I came across this blog by a Ibanker who is bitching about the government's sanctions on bonuses and shit. Just wanted to come on here and see if that's how all bankers / banker wannabes think. Here's the link.
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It's already been well discussed here
http://www.wallstreetoasis.com/forums/house-to-vote-on-aig-tax-today
No, that is not how all bankers think. That is how all intelligent supporters of America, and those with any knowledge of history, economics or law, think.
Couldn't have said it any better myself.
It's just plain un-American. Things would already have been in the process of taking care of themselves if the government hadn't stepped in. I was all for the bad banks failing and letting natural economics work things out like they should.
The despise toward our government's actions has much less to do with our own livelihoods than it does with the future of the entire economy.
I am also not a banker, I am just a concerned citizen who knows that this country was based on so many of the very same freedoms that are now being taken away from us one by one
now a days i wonder whether the constitution means anythin at all to Congress or if its just a old piece of paper that every Dem wipes their ass with.
Targeting specific groups or individuals to levy taxes on is unconstitutional and corrupt.
This whole thing is based on politicians saving their own ass. The taxes will not stand up in court (looks like it'll be the Supreme Court since the defendants will be the entire House of Congress). Politicians can not publicly let the AIG employees receive bonuses because that would be career suicide with the current mob mentality on Main Street. However, we can thank the Bill of Attainder in Article I, Section 9, Paragraph 3 of the Constitution. Funny thing is, A) they are politicians, if anyone should know the Constitution it's them and B) it'll cost even more taxpayer money by fighting this in court, and isn't it taxpayer money they are trying to save? I want to see Jamie Dimon come to the forefront, I think the government at least respects him.
You guys are missing the point. Ed Libby is the idiot who put the politicians on the spot. If he showed some effort to renegotiate the terms of bonus package, he wouldn't have stirred such public outrage. Any sensible hard-working American citizen would react just as Congress did in this case. Don't give me bull crap about upholding the contract. AIG's extraordinarily piss-poor performance deserves extraordinary measure.
First of all it's Ed LIDDY, you don't even know the man's name and you are calling him an idiot, look at the irony in that. He's to blame? He's making $1 and trying to help AIG and the economy. He had a room full of congressman attacking him like he started this shit, and didn't even have his board there to help defend him. Renegotiate? Who the hell would re-do their contract to make less money unless they were asked? I'm sure you'd feel inclined to give back money when no one was asking for it, because you felt it was morally right. And after they did protest the bonuses, he DID state he's trying to get 50% back. Also, any sensible hard-working American citizen? You mean like all the people in the financial sector that keep this damn economy propped up? Congress and the government structured the contract, why the hell did they wait until after they already gave the bonuses? Why did they write in the bonuses if they had a problem with it? Why did they not correct the situation with specific conditions on subsequent bailout money they gave? If they were so smart, the government that is, why not let the companies go bankrupt? They could of stopped the bonuses that way as well. Not one good thing has come from government intervention, yet you are defending them. Come back when you know what the hell you are talking about.
I just find it funny that you expect government to do everything for you. Of course AIG should have more senses to not pay bonuses or at least defer payment. Is it government's fault that AIG is paying bonuses? What world do you live in? Last time I read AIG still haven't repaid tax payer's money when they paid out bonuses. Yes, it's morally right not to pay bonuses when your ass is saved by everybody else. Which part do you not understand? I don't care if Ed Liddy -- thanks for correcting me on that one -- was getting paid $1 or horseshit. I care about the money I paid that went to save AIG. Do you know what you are talking about?
a) You realize that this bill is not just going to affect AIG, right?
b) "Upholding contracts" is not "bull crap." It is the foundation of any functioning society and economy. If businesses and individuals are not confident that the legal contracts they enter into will be honoured, they will be more hesitant to lend, borrow, spend, and generally conduct business. That cannot be good for an economy that needs jump-starting and a credit market that needs unfreezing.
c) In terms of public anger, I think you missed the part where the blog author says he does not blame the public for getting upset. He merely finds the opportunistic and populist response of Congress cheap and distasteful. Drawing political support by scapegoating a common enemy is the oldest trick in the book - just ask Hitler. A couple hundred million dollars in bonuses should be the least of Congress' worries right now; they've got much much bigger fish to fry. Yet they choose to focus on the trivial and optics-friendly because they care more about their political careers than the economic well-being of the country.
The financial industry is almost purely driven by intellectual capital. If you start significantly reducing incentive for your investments (read: America's TARP investments) to grow, you are shooting yourself in the foot. If the TARP receivers are forced to be taxed in this way, all top intellectual capital will start flowing to non-TARP banks and there will be no way TARP-banks can repay their debt.
But then again, the government has incentive to appease its constituents, and not make America money. Unfortunately, the masses are complete idiots and do not realize that this move would be absolutely ridiculous.
But what do I know---I'm just a rookie.
I'm gonna have to disagree- the financial industry is driven by fast-talking Bernie Madoff type hucksters, Cramer-esque swindlers and the such. At the end of the day WS is a glorified sales career and it is all driven by bullshit projections in ER and IBD and front-running and punting with OPM in S&T. Am I way off here?
And what is intellectual capital at a bank? I admit Alex Lipton, Bergomi, Piterbarg etc. are smart guys who work at banks but outside of a handful of people, all published "research" done on WS is utterly trivial.
Didn't land any interviews, did you kid?
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