interesting thoughts!

I believe it’s not possible to make a general statement on whether money makes people more or less happy. Money comes with a whole set of new elements that may have good or bad impact on our happiness, and depending on how susceptible we are to every one of them, the conclusion will go one way or the other (i.e. different from person to person).

I recently made an effort to provide a more comprehensive picture of what these ad- and disadvantages are. I invite you to have a look at Money and Happiness and tell me what you think!

Thank you,

Nick

I’ve benefited from the bank bailout, and I think too the UK could even make a profit on the banks it has semi-nationalized, let alone avoid the unseen and unthinkable costs of the banking collapse that was averted.

What I don’t agree with is bankers make millions out of this extraordinary State support, when they’d all be bust without it. It’s hypocritical socialism for the rich.

I don’t think only those who worked on CDOs were to blame for the near-collapse, either. CDOs were what blew up in 2007, but if they hadn’t, something else from the ultra-lax approach to risk banks were taking in their well-documented hunt for yield would have soon enough.

On 25K, 50% bonus tax, what about the managers, or the marketers, or the hundreds of thousands of people who had nothing to do with mortgage debt collaterlization?
.-= On Financial Samurai: The Katana: Performance, Income Poll, Winners, Good Reads 1/10 =-.

We might be on the same wavelength in one respect at least
I was unaware that the American banks have repaid the TARP funds. This does not appear to be the case in the UK, as of early Nov 2009

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6496295/Bank-bail-out-every-family-shouldering-4350-tax-liability.html

When, and only when, this has been repaid AND the boring banking sector has been split off from the racy investment banking business in a UK Glass-Steagall act, I’m in agreement with you, investment bankers can whoop it up on Dom Perignon as much as they can sting the investors for.

IMO the sort of banks that deal with wages, loans to business etc should be regulated so the implicit State guarantee needed to make us feel secure in holding pounds rather than gold bars is bounded, and can be evaluated by the limited skills of regulators. That inherently limits their sphere of activities, so wages will be lower in those banks. There is no need for the UK tax payer to underwrite “financial weapons of mass destruction” any more.

BTW the bankers tax applies to those ‘earning’ a bonus of more than £25k according to the FT http://ftalphaville.ft.com/blog/2009/12/10/88126/bankers-bonus-tax-hits-100/ Bank tellers don’t get anywhere near than much, so if they still got a job they are unaffected.

What’s more, a distinct and not insignificant tranche of bankers/traders (lawyers/fund managers etc) have become completely detached about what a good income is, and whether what in their eyes is hard and good work is really that much harder or, socially speaking, better, than what all kinds of other professions do.

We shouldn’t believe the hype. City salaries didn’t used to be so divorced from other high-flying salaries, it’s something that happened in the last 25 years, partly as a result of the influence of US banks but much more the fact that so much money churns through the system and they take their 0.1% of billions, and then desperately seek explanations for why they’re worth it, rather than accepting they might not be (at least until you get a couple of drinks in them!)

As for the contribution to the UK economy, yes it’s massive (10% of the tax take) but there are downsides (property in London flits in and out of being the most expensive in the world, though it’s currently a lot cheaper due to the sick pound).

Taleb claims in Black Swan that US banking has been a net lossmaker for the U.S. taxpayer due to the various banking crisis over the years, though I don’t know if that’s true or true of the UK…

Hence, I’m pretty sure the UK public is quite similar, and actually really loves your banks again b/c surely they will fund raise from you, and you will participate because you want to make money from them.

It’s important recognize only a minority of people in the finance industry participated in the CDO/securitization of mortgage mess. Why should we publish everyone? What did your bank teller do for example, except provide service with a smile.

The common folks are secretly supporting the high flyers, they just aren’t telling you.

FS

In may ways as a UK taxpayer I take the view that what is really socialistic is that I have paid/will pay for the downside risk while the bonus-taking scum ride off with the upside.

Intellectually I agree that making populist tax policy on the hoof is worng in so many ways. I would have nationalised what I had to save, let the rest go to the wall and instigated a UK Glass-Steagall act to save the non-investment banking section. Perhaps it’s as well I’m not in charge, but at least I would have the benefit of knowing I don’t know.

As for this cheesy old bromide

“in the long run, will drive hundreds of thousands of jobs away from your country and hurt the economy even more.”

Quite frankly, I don’t give a damn. If this sort of mess is what bleeding-edge success looks like I want none of it. The City boys can whoop it up on champagne and bonuses all they like, as long as the buggers don’t end up screwing the system so hard the rest of us have to PAY for their bloody champers.

Why people don’t understand the reluctance of the common oiks of this country to sponsor the lifestyles of the so-called high-flyers with rewards for failure is something I don’t understand.

Rob

I still think it’s absolutely Socialistic that the UK gov’t is instituting a sudden 50% tax on bonuses over US$40,000. That’s just ridiculous and in the long run, will drive hundreds of thousands of jobs away from your country and hurt the economy even more. WHY the gov’t doesn’t realize this, I don’t understand. Must be an election year lol.

Your MWW is doing well! +8.5% for the week! I put up a permanent tab to highlight all your glory. If you ever have any updates on the company or what not, please feel free to plop an update there.

Best, Sam