why didnt i think of this sooner. most people other than the recepients have been annoyed all the way to apoplectic about the bonuses paid out by banks and investment banks (not sure if there are any of those left). now bonuses, unless youre merrill lynch come out of profits. but what is profit when you have large leveraged balance sheets? as the december 31, 2009 financial statements come out, we are seeing that many of these banks have very high per centages of non performing loans. these will undoubtedly lead to more loan loss reserves in 2010. what we should have done was reserved the hell out of these balance sheets in 2009; reducing profits thus reducing bonuses and gone into 2010 with stronger balance sheets.
what do you think?
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3 comments:
now you're talking my friend.
thomas jefferson said, in 1802,:
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered..."
He also said "The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
I have no doubt he would be outraged how "greed" has become so common in America. Even at the cost of others, it drives and drives. Common sense, balance the sheet, profit last. We have it reversed don't we?
Mr. raben makes more sense than Bernacke at this point. Bravo.
i like you idea. it make sence to me. cause it is common sence. do you think banks have common sence? no, they do got greed though. and so do investment banks now. sorry to make you feel down and bad.
i wish i knew more about finances, then maybe i wouldn't be in the mess i am in. to the point, you are so way above me in banking and money matters, i thought that our stimulus money already paid for these loans loss. was it not used for the balance sheets? see, i am clueless as many as my friends are.
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