Time to raise interest rates, time to stop false BRICK economy

Thrugelmir

SuperV wrote: »

Accepted and repacked by bankers? Due diligence... was forgotten.

The concern must be that the UK taxpayer will pick up another tab to pay. As RBS are being potentially being sued for $30 billion of this worthless paper.

SuperV

Thrugelmir wrote: »

The concern must be that the UK taxpayer will pick up another tab to pay. As RBS are being potentially being sued for $30 billion of this worthless paper.

Why? Let those that work in banks pick up the tab... the bigger bonuses they got, the more they should pay back.

But this is again only about a broken wheel. Bankers are just a symptom.

Thrugelmir

SuperV wrote: »

Why? Let those that work in banks pick up the tab... the bigger bonuses they got, the more that you should pay back.

Only a small % was paid as bonus on the profit made. The writ is on the basis of total loss of the asset.

The remainder has already been lost elsewhere in the business.

SuperV

Thrugelmir wrote: »

Only a small % was paid as bonus on the profit made. The writ is on the basis of total loss of the asset.

The remainder has already been lost elsewhere in the business.

How big part of revenues is paid to employees of banks? Can you please remind us?

SuperV

SuperV wrote: »

How big part of revenues is paid to employees of banks? Can you please remind us?

Am I wrong if I say that it was up to 50% of revenues, not profit?

SuperV

"Party heardy NYU economist Nouriel Roubini went on Bloomberg TV on Aug. 31 to give his latest prediction of the global economy:
"We’ve reached a stall speed in the economy, not just in the U.S., but in the euro zone and the UK. We see probably a 60 percent probability of recession next year, and, unfortunately, we’re running out of policy tools.....and sovereigns cannot bail out their own distressed banks because they are distressed themselves."

http://www.businessinsider.com/roubini-sees-60-chance-of-a-double-dip-in-2012-china-and-brazil-also-at-risk-2011-9

Solution is simple - get away from BRICK economy. Money has to be invested in REAL Wealth creation, not supporting old assets just because the owners of old assets have good relationships with governments.

Thrugelmir

SuperV wrote: »

Am I wrong if I say that it was up to 50% of revenues, not profit?

So a Goldman Sachs trader does a deal for $15 million of Vodaphone shares. They would get paid $7.5 million on your basis........:eek:

SuperV

Thrugelmir wrote: »

So a Goldman Sachs trader does a deal for $15 million of Vodaphone shares. They would get paid $7.5 million on your basis........:eek:

That is not an answer, that is just usual smoke and mirror banking...

http://www.economist.com/node/14034875

"In the case of Goldman Sachs, shareholders received $4.4 billion of profits during the first half of this year while staff were allocated $11.4 billion in pay and bonuses, equivalent to about half of the firm’s net revenues."

Thrugelmir

SuperV wrote: »

"In the case of Goldman Sachs, shareholders received $4.4 billion of profits during the first half of this year while staff were allocated $11.4 billion in pay and bonuses, equivalent to about half of the firm’s net revenues."

Net revenue. After expenses.

= net profit.

Not the same as gross revenue or sales or gross income

SuperV

Thrugelmir wrote: »

Net revenue. After expenses.

= net profit.

Not the same as gross revenue or sales or gross income

You are right still 50% is ...