I wonder if executive pay will cut at those banks that have been caught making fundamental management errors. Many banks are paid very large sums every year to service mortgage loans. Yet they have been exposed to have lied and filed false statements in foreclosures. Their internal management systems have been geared to cost cutting and minimal "service", contrary to their legal obligations. Some bank management has lied about its procedures when first asked [e. g. Bank of America].
When management fails in its duties, its pay should be cut. Or they should be fired. Obviously high level management is at fault - trying to wring out excessive profits, they have caused the organization to fail in its duties. Top management at all those banks should see serious cuts in bonuses; perhaps even pay cuts. Running the company properly is their jobs. When they fail, why give them a bonus at all?
I wonder if worldwide social revolution will get a spark? Certainly the pile of tinder, kindling and dry fuel grows daily. The ruling classes of the rich and powerful and their overpaid, cossetted public employee bureaucracies seem to be getting serious pushback as they try to impose the costs of financial and governmental restructuring on the common man & woman. This is not simply a US issue.
Billionaires the worldwide are using looted wealth to obtain more power and status. Here's a quote from a column in the weekend FT: "On the opening day of Frieze [the Pavilion of Art and Design covering Berkeley Square in London], when I could only spare an hour to scout, I spotted a couple of Russian oligarchs, three North American billionaires, Tom Ford, a sprinkling of other celebrities and a lot of runners, all circling the big-hitters. The money is guarded fiercely by a wall of advisers-as-human-shields, while the amount of hot air that ricochets around the art scene is staggering. It is everything to do with names and status and nothing to do with love of art, or so it seems. There’s a palpable desire to acquire the latest wunderkinder – although how these wunderkinder are determined is a curious process and seems to have little to do with artistic merit. I wonder whether the oligarchs even care where the “wunders” will be next year? There’s so much money swilling about that while the “clever art” (that which doubles in value) may remain on the wall, the majority can be consigned to a Moscow basement. The increasing global disparity of wealth is disconcerting to witness."
Aristotle and Pericles would spit.
And people wonder why I am well-prepared to civil strife and armageddon.
Word of the Day
"Despond" - verb, intransitive [$10] archaic alt.: dispond [$1000]
Despond means to become discouraged.
Sentence: The middle class private sector desponds under their grossly unfair treatment by the ruling classes and their bureacracies. Without a loyal middle class, modern society can collapse. How far can they be pushed?