Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Taxing Bank Bonuses is Petty Fascism

Politics / Credit Crisis Bailouts Mar 26, 2009 - 11:08 AM GMT

By: Andrew_Butter

Politics

Best Financial Markets Analysis ArticleThe recent idea to put a punitive tax on bank workers is a modern equivalent of yellow badges.

But maybe I'm biased ..."some of my best friends are bankers".


The amount of money is a pittance compared to what's at stake, and the point is simply that there was a legal contract of employment, the workers did the job; they should be paid. That's the Law, at least it was until recently.

If (a) the new owner thinks that the workers are being paid too much, then re-negotiate or fire them. And if you can't find anyone else to run the company, then run it yourself Mr. OWNER.

If (b) the new owner thinks that the workers and management conspired to rip of the company then there is a legal framework to deal with that, what you do is ring up the FBI with a complaint about racketeering, and if they think there was a crime then they will deal with it under the Law.

What you don't do is change the Law after the fact to penalize a minority, particularly if you are doing that to whip up political support from a handful of thugs that get off on sending threats to hang people with piano wire.

Do that and see how many private companies take up on your idea of a public-private partnership!

Come to think of it, with all this talk about piano wire, and changing laws to dispossess an unpopular, wealthy minority, my mind wanders to the question - well who cares?

The background to the most successful Fascist Empire ever:

It is arguable whether the "New Deal" rescued the US economy; some people say that all it did was rescue the destitute, and as such it was more of a (smart) social policy (the alternative might have been riots), rather than an effective economic policy. A better benchmark for a highly successful Keynes style stimulation was the Golden Years in Germany (1923-29), which has many more similarities to the current situation in USA , for example:

a): Then Germany was heavily in debt, USA was not.

b): Germany was running a huge current account deficit, then USA was not.

c): Those days Germany 's manufacturing was shot; the industrial power house was USA , these days substitute USA for Germany and China for USA .

d): Germany 's main trading partner ( USA ) was financing it's debt (today ditto China ).

The Golden Years laid the economic foundation for a spellbinding and charismatic (and evil) orator who incidentally wasn't actually a "true full blooded German", to illegally take power, put in place brutal (yet "legal") discrimination against minorities he didn't like and start a World War.

All that started step by step, precedent by precedent.

Remember when Jaques Chiraq went on TV to explain why he thought going into Iraq was a bad idea (and the net result of that was that the "French" in French Fries was removed from menus throughout USA ).

Well what he said is that for the world to work properly, there has to be "La Justice", which means THE RULE OF LAW.

Well he was right then and he is still right (notwithstanding that he was wrong about a lot of other things).

Lose that and in the end you can lose everything.

By Andrew Butter

Andrew Butter is managing partner of ABMC, an investment advisory firm, based in Dubai ( hbutter@eim.ae ), that he setup in 1999, and is has been involved advising on large scale real estate investments, mainly in Dubai.

© 2009 Copyright Andrew Butter- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Andrew Butter Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Nadeem_Walayat
26 Mar 09, 12:51
Facist Taxes

I see a flaw in the argument, in that if the banks had been allowed to fail as companies are allowed to, then the likes of Fred Goodwin would be getting a pension of £20,000 per year instead of £700,000 plus 3.5 million lump sum.


Andrew_Butter
26 Mar 09, 13:12
Facist Taxes

OK so let them fail, when the government decided to buy they knew the deal.

And if they thought it was illegal then sue for racketeering.

I think there was a lot of what happened that was racketeering where management made cozy deals.

My point is you can't change the law after the fact.

If the law allowed management to make cozy deals with their mates - so it was a stupid law, but you can't change the law retroactively

You don't fight corruption with fascism.


Nadeem_Walayat
26 Mar 09, 13:53
Facist Taxes - Rioting

The bankrupt bank liabilities have been fruadulently dumped onto the tax payers, they are the innocent party that will pay the price for decades.

The governments have been FORCED to bailout the banks by the actions of the bankers in charge. It is fraud, and any bank that has beeen saved at tax payer expense needs to have all employment contracts voided as had a reciever been appointed then their contracts would have ended, instead the

foolish government has been conned into bailing them out so that those responsbile continue to bank bonuses and pensions. It will destroy capitalism if you reward fraud on such a scale as the people will not put up with it, there will literally be rioting on the streets and the

emergence of some crackpot socialist ideology.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules