Tuesday, 26 January 2010

Tap, Tap ... The "snow" palm 2010 is for ...

"Finnish bancassurer Tapiola said in a statement Tuesday its pension arm had raked in a 13.5-per cent return on investments last year after taking a 8.3-per cent hit the year before. ... the result was the best ever.", STT

Put the music on - even if you are at work ;-> (that will chill you out)- the text below will make even more sense.

Indeed, applaude the speculator of the year ...but let me remind (may I ?) that they made gain on the back of governments stimulus (tax payer's money) and central banks financial rescue(generosity) . This company only represent , the exact same type of company that created this mess (price speculation - oil/food -) and will flood its managers with record bonuses - in some cases.

While at the same time some earn less, or lost their job...."what a wonderful world" as my friend Louis would echo...

"I see trees of greed, red carpets too
I see them boom for them and them
And I think to myself what a wonderful world.

I see skies of green and clouds of black
The dollar blessed day, the dark sacred oil
And I think to myself what a wonderful world.

The color of money so pretty in the sky
Are also on the faces of bankers going by
I see speculators shaking hands saying how did you gain
They're really saying I love it.

I hear bankers smiling, I watch them bet
They'll earn much more than I'll never work for
And I think to myself what a wonderful world
Maybe I think to myself what a wonderful world?


Andrew said...

something really seems to annoy Armstrong around 1.50 and by 1.58 his eyes are blazing! But quickly forgotten and on with the song

HousingFinland said...

...Maybe he saw a republican among the spectators...

In the same spirit as the above article , here is an excerpt of an interview of Trichet...

"...trust profoundly that our democracies will not accept twice to put between 25% and 30 % of GDP of taxpayer risk on the table to sustain the financial sector. We have an absolute obligation to make the system much more solid.", Trichet, 27 March 2008

For the record ...

Andrew said...

But in the same interview Trichet also clearly says this:

Mr. Trichet: We are now experiencing a modest recovery in Europe. the market is fortunately functioning again and governments put over 25% of GDP of taxpayer risks on the table and major central banks have engaged in non-conventional measures, which have been absolutely extraordinary. things are progressively back to a normal functioning thanks very largely of the incredible engagement and commitment of public authorities which normally should not do that.

Question: Do you see any evidence out there that there is excessive risk taking in the financial system again?

Mr. Trichet: All what central banks decided to do as regards non-conventional measures was done with the sole goal of permitting the financial sector to do its job, which is financing appropriately the real economy. Our message is crystal clear.

Question: Do you think that the banks in Europe have been forthcoming enough about their potential losses?

Mr. Trichet: The theory according to which the European banks would be less transparent than other banks in the industrialized world is not confirmed by what we know.

Question: What kind of a grade would you give banks at this point?

Mr. Trichet: There have been many measures taken by financial institutions in the various market places, we must eliminate, as soon as possible, all remaining abnormal supply of credit constraints.

Question: When central banks recognize that a bubble is developing should they take corrective action to pop it before it becomes a big problem by raising rates?

Mr. Trichet: As regards the European Central Bank, we feel today vindicated in our monetary policy concept,


So there you have it. According to the head banker in Europe credit conditions are too tight and he did everything correct before this crisis.

Billpete002 said...

It seems there's enough money sloshing around to move inflation up to 1%


Andrew said...

But maybe not sufficient inflation to stop the price of gold falling back to 1000? Going to be interesting what happens this week

Billpete002 said...

I think that was mainly because Soros said that gold was going down 'because it's a bubble', i.e. he wants the price to go down to buy more of it.

Andrew said...

Soros was only pointing out what seems already evident. Gold is in a bubble unless you believe high inflation is a sure thing in the near future. Fewer and fewer people are believing that now.