Some people start wondering where the U.S. is heading to. I’m not (yet) a fan of the doom scenarios that forecast a not-so-rosy future for the super power (of course with China coming up). But I have to admit that the financial crisis generated by the USA, leading to a world-wide economic downturn, does not favor optimism.
China has been accused of being too conservative in banking, to be poor in allocating financial resources plus the money-grabbing. Maybe but thank you, that is also how China avoided a major implosion.
When we look at the track record of economists and financial institutions in the USA, we can only conclude most had/have no clue and the so-called creativity and expertise in Wall Street is an illusion. Those new financial tools (so complex most don’t understand them) do not bring any added value to the economy, whatever clever explanations cooked up by Wall Street. They only fill the pockets of some.
See this news:
10 Nov 2009 (SCMP)
Goldman Sachs Group, Morgan Stanley and JP Morgan Chase’s investment bank, survivors of the financial crisis, are set to pay record bonuses this year.
The three biggest banks to exit the troubled asset relief program will hand out US$29.7 billion in bonuses, according to analysts’ estimates. That is up 60 per cent from last year and more than the previous high of US$26.8 billion in 2007.
The money, split among 119,000 employees, equals US$250,400 each, almost five times the US$50,303 median household income in the United States last year, data shows.
The doomsayers must feel vindicated. Bonus for screwing up. Even China does better.