Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The AI Stocks Megatrend Big Picture - 8th Mar 21
The Future of FINRA, Regulatory Defense and Bad Stockbrokers - 8th Mar 21
Almost Everyone Is Online: But Most of the Money Isn’t - 8th Mar 21
It is Time for Stock Market Investor Caution? - 8th Mar 21
Gold Predictive Modeling Suggests A New Rally Targeting $2300+, But When Will it Start? - 8th Mar 21
Gold: Crisis or Opportunity? - 8th Mar 21
US Bitter Cold Snap is a sign of the times - 8th Mar 21
How Scan Computers Builds Your Custom Built PC - Scan.co.uk Review (2) - 8th Mar 21
US Economy, GDP, Unemployment, Inflation Impact on House Prices Trend 2021 - 8th Mar 21
BACK TO SCHOOL - UK Coronavirus Lockdown Ending - Summer Holidays & Booming Economy Ahead - 8th Mar 21
So, Where Is Gold's Corrective Upswing? - 7th Mar 21
US Treasury Yields Rally May Trigger Stock Market Crazy Ivan Event - 7th Mar 21
The Great Reset Is Coming for the Currency - 7th Mar 21
Gold Continues Declines on Bond Yield Jitters - 7th Mar 21
The Case for Inflation - 7th Mar 21
Dow Short-term Stock Market Trend Analysis - 6th Mar 21
Intel Rocket Lake EXPLODE on Launch - 11th Gen CPU's RUN VERY HOT Bad Cinebench R20 Scores - 6th Mar 21
US & UK Head for Post Coronavirus Pandemic Lockdown Inflationary Economic BOOM - 6th Mar 21
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

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