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Tuesday, 13 October 2009

Bank Profits and Bonuses

The international bankers have again achieved what should be imposible.
They have made very significant profits, from which they are paying large bonuses; making fools of the politicians who bailed them out at such huge cost just a year ago. Ministers demanded that bonuses be limited: they have not been; though there are some cosmetic changes in the timing of when the rewards will go into the blokes' pockets.
How do they manage this, when things are getting tighter for ordinary people and for 'real' businesses?
The answer is, that they trade with others of their ilk in imaginative contracts, not in reality,
This is explained in Nuclean Economy, acessible via this blog.

1 comment:

  1. We shouldn't forget that the banks are also trading with public money. The direct subsididies to the banks and the indirect support through quantitatiive easing have not found their way into the real economy but into the financial markets. Just look at the contradiction of the real economy contining the shrink while the stock markets rise rapidly.