Tuesday, August 3, 2010

How do the Banks do it?

Global banking giant HSBC unveiled bumper half-year profits of £7billion today - then outlined plans to hand more than £6 billion 'compensation' to its staff.
But HSBC bosses immediately risked stirring public fury when they revealed that 'just over 20 per cent' of revenue had been allocated for employee compensation.  Daily Mail
What I'd like to know is how the banks do it?
The rest of the world is struggling financially. Countries like Greece,  Spain, Portugal and UK having to face and intense period of monetary restraint, All of us New Zealand included have found our standard of living declining and yet here are the banks, after a dramatic financial crisis, producing massive profits! How?

No only massive profits but now the banks intend to offer £6 billion in compensation to their staff. What for? For bringing the world to its knees? The politicians and our world leaders  seem prepared to sit back and let them get away with screwing the rest of us yet again!

I fail to understand why the banks are allowed to do this? Bankers today are just gamblers, big gamblers of the sort that inhabit Las Vegas. The difference is the banks are doing it with our money.  To make money by gambling you have to have lots of cash and take big risks. You have to hedge!

How do I know all this? When I was a child life was quite boring especially in school holidays. I had a proper little roulette wheel with chips and table and I spent hours playing roulette! I soon learned that if one had lots of chips and 'covered the table' one hardly ever lost. If I started with just 10 chips I never won.

Bankers today are free to gamble with my money. The lack of regulation means any bank is free to take enormous risks, the local high street bank is now a high roller and of course although they win most of the time the odd occasion arises when the high roller loses the lot.

Then the gambler/banker needs refinancing on a huge scale and guess who did that? Us!!!!!!

The bankers are in fact laughing all the way to their bank! What suckers we are to trust them!

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