atans1

Monkeys eating golden peanuts remain monkeys

In Banks on 10/09/2013 at 5:07 am

They don’t morph into geniuses, contrary to what the PAP implies.

Yesterday, I opined that Yaacob and Mah disprove the PAP Hard Truth reasoning that ministers must get paid very well. Well here’s evidence that high pay doesn’t result in gd returns for investors because bank executives get paid plenty of money but investors don’t benefit.

http://www.economist.com/blogs/buttonwood/2013/07/investing-0

[I]f there might be a justification for high bank salaries, it is that they have delivered high rewards for investors, and that is clearly not the case. This seems to be a classic case of an inside job – of executives benefiting at the expense of shareholders.

What is … striking is the contrast with the performance of bank shares (see chart), with that of the salaries of bank executives. The inflection point in bank salaries goes back to the early 1980s and we could only get data for the chart back to 1994. But I suspect the longer-term trend would be the same as the 1980s was marked by the third world debt crisis that damaged so many bank balance sheets. As a humourist once wrote of British films

Isn’t it funny/

How they never make any money/

When everyone in the racket/

Cleans up a packet

—-

Related posts:

https://atans1.wordpress.com/2012/01/25/refute-this-question-pap/

https://atans1.wordpress.com/2011/11/10/best-nmps-jos-yeo-and-terry-lee/

https://atans1.wordpress.com/2013/07/26/golden-peanuts-legislators-salaries-relative-to-their-countries-gdp-per-prson/

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  1. Don’t insult the monkeys. Even on a diet of golden peanuts monkeys do not promise you anything and harms no one.

  2. It’s actually the familee robbing to buy loyalty from their mercenary henchmen. Once that is assumed, then one can start to understand that the failures of this government, from the time they pegged their loot to the top 1000, are the results of attempts to squeeze the daft subjects.

    The wooden PM did not even realise that the wily old fox was deftly manipulating him to put in place processes that will entrench his familee’s grip

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