Did we in fact dodge the ‘Depression bullet,’ or have the events of the past few months proven that in fact, the human race at the present time is incapable of reordering the global economic system?
According to the Financial Times Deutschland ‘s chief economist Thomas Frick, most of the transactions that banks were and continue to conduct are not only unproductive – they are downright destructive. And the profits made are drawing badly needed talent to precisely the wrong places in a world in crisis.
For the Financial Times Deutschland, Thomas Frick writes in part:
“Have you ever wondered why you’ve never received a million dollar bonus from your boss? (Skip this question if you’re employed in the financial sector) – even though you’re hard-working, talented and obedient? Probably not. The answer is obvious. Even in moments of extreme compassion, most employers wouldn’t have so much money, certainly not for everyone. Rather, the question is why so many banks had that much money left over and why they have it again – and whether that’s a good thing.
“Since 1970, the financial industry’s share of the U.S. economy’s nominal value has doubled from four to eight percent; and the same goes for its share of wages – pay attention – with an almost unchanged number of employees, as the Kiel Institute for the World Economy discovered. This is miraculous. Can bank employees really have increased their productivity so dramatically?
“One can’t even imagine what could be done with hundreds of physicists and other highly gifted individuals, who for years calculated hedge fund risk models that they themselves barely understood – from the accelerated development of flu vaccines to solar power plants in the desert to a detailed economic plan for the Free Democratic Party. … And banks could again focus on having friendly staff giving loans to people who want to invest in something that makes sense.”
By Thomas Fricke
Translated By Stephanie Martin
November 20, 2009
Germany – Financial Times Deutschland – Original Article (German)
Have you ever wondered why you’ve never received a million dollar bonus from your boss? (Skip this question if you’re employed in the financial sector) – even though you’re hard-working, talented and obedient? Probably not. The answer is obvious. Even in moments of extreme compassion, most employers wouldn’t have so much money, certainly not for everyone. Rather, the question is why so many banks had that much money left over and why they have it again – and whether that’s a good thing.
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