"European Central Bank President Jean- Claude Trichet urged companies not to set a ``bad example'' to workers by awarding large pay increases to executives.
Trichet followed European officials in pressing for wage restraint among the region's top earners as a way of cooling inflation. Central bankers including Nout Wellink of the Netherlands and Bank of England Governor Mervyn King have warned that bonuses paid to bankers risk distorting their economies.
``It's legitimate to raise questions on increases of certain salaries, which are already very significant,'' Trichet said in an interview with L'Express. Pay moderation is ``valid for everyone without exception,'' the French magazine cited him as saying. "
Among their salary, those executive are getting as well stock options that can bring them as much as 1, 2 or 5 time their annual salaries. If they step down, (yes we don't call that 'get fired'), then they get 'golden parachutes'...
They have as well "smart" accountant that manage to get very low tax on their income and in some case they use offshore account either in Switzerland in order to avoid paying high tax. Some as well relocate themselves in Tax Paradise country such as Monaco, Lichteisten and Luxembourg
Of course, You have as well businessmen that start to bribe politicians in order to get tax reforms (see inheritance reforms etc...), tax break etc... what is lost in one hand has to be taken on the other. The other being higher social fees as witnessed recently with childcare soaring (15%), public healthcare
Just have a look into the previous article : not on diet
2 comments:
So at last Mssr. Trichet is concerned about wage growth for the fat cats. This after years of sky-high bonuses. What he is really wanting is wage restraint for the middle and lower classes like the nurses. The wealthy and super-wealthy are more protected than the average sap working like his/her spouse to pay off an overpriced home, for they are diversified and will come out of a downturn likely wealthier. Information if key, and if you and I are reading about something, rest assured the big money already knew about it.
Well, none of the excesses are corrected until the people are in the streets, and that does not happen until the pain gets unbearable. Is the bear going to visit the Finnish housing market? Stay tuned.
Excess, indeed there is. History as shown that anything that get out of its natural equilibrium comes back to it soon or later.
People are asking for price stability. The ECB should deliver that, quickly, before people anger grows bigger.
Interest rates were far too low and for too long during the 2003-2005 period, thus creating the housing bubble that we are witnessing.
Spain, Ireland are already experiencing the bursting of their bubble or excesses. Now the rest is about to folow, it's a slow motion process. The housing market is not the stock market (highly liquid) that adjust very quickly.
Housing will burst in a very slow pace and take usually 3-6 years to clean up.
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