I get a little irritated when Labour supporters blame the current financial crisis on the banks as they’re merely trying to sidestep their own incompetence. The generally accepted root cause of the credit crunch amongst Economists is interest rates held too low for too long and the blame for this lays with the chairman of the America Federal Reserve, Alan Greenspan and, in the UK, the Chancellor, Gordon Brown.
This is not to say that others should not share the blame. We, as individuals, were to blame for knowingly borrowing far too much and, yes, the bankers were to blame for their incompetence in lending far too much and for tying themselves in knots with odd financial instruments such as credit derivatives.
However, I too am angry with the bankers because they are not sharing the pain. It might be argued that the rich, by definition, never suffer during financial crisis but what irks me is the bankers arrogant inclination to actually raise their income by large amounts while everyone else is having to cut back. Today’s Guardian reported that the head of JP Morgan, Jamie Dimon, received a 51% pay rise!
What planet do these morons think that they’re on?
Bankers argue that they have done a brilliant job in making profits for the banks since the credit crunch and in so doing dug the banks out of the mess they were in. This disingenuous as they have achieved all this merely by the putting their prices up. Competition has dropped out of the market, base rates are ludicrously low let yet loan rates and fees are high.
So who is really paying for the banks recovery and Mr. Dimon’s bonus? You are! Joe bloody public again. The same poor bastard who also paid for the banks bail out. You don’t need to pay a £3m bonus for a trick like that.
Whenever criticised bankers usually reply that you have to pay the market rate or you will lose people. Well, OK, let’s lose some of these people. Firstly, where can they go? Secondly, if they have so little solidarity with their fellow countrymen then bollocks to them and thirdly their past performance IS an indicator of future results so good riddance to them.