Saturday, September 19, 2009

Bankers, who needs 'em

Fox News is waxing indignant about a Federal government ruling allowing the Feds to control the salaries of ALL bank workers, even if the bank never took TARP money. I suppose it's a bad precedent, if the Feds can set salaries for bankers, then they can set salaries for every worker in every industry. On the other hand I have trouble working up any real sympathy for the Wall St idjits who brought us Great Depression II while taking home multi million dollar salaries.
I'd be happier of the Feds worked on regulations to make the banks do real banking and stop them from gambling between themselves using FDIC protected money. When banks finance construction, inventory, manufacturing, and enterpreneurs, they are serving a real social need. Business needs to borrow money for a lot of legitimate purposes. If they can't borrow money, business growth, and the employment that comes from business growth doesn't happen.
On the other hand, banks loaning money to other banks, financing mergers and acquisitions, buying shady paper like the mortgage backed securities and the credit default swaps, is destructive of the real economy. Bankers should not be getting paid big bucks to engage in it. Some regulations outlawing gambling on Wall St, at least gambling with FDIC insured funds, would do a lot to drive out the overpaid parasites in Wall St.

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