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June 23, 2009


Luis Enrique

not sure about point 3 - lending for consumption smoothing is a different kettle of fish from lending for investment in production and I don't know a priori what the relationship between the two should be - I don't know we can look at household lending being larger than corporate lending and conclude the latter is at the wrong level. Sending corporate lending targets sounds like a very bad idea to me.

What about some other questions, like ... why do banks generate such large fees in the first place? After all, if you hold revenues constant and reduce wages and bonuses, you just increase profits, which doesn't sound like the kind of things all those worried about bankers' pay are shooting for. Why don't banks compete on price and cut each others' margins? Why isn't the supply of would-be bankers enough for competition between workers to drive down wages?

Luis Enrique

sorry, of course all that household lending isn't for consumption smoothing is it - it's mortgage. typing faster than I think, again.


I would suggest a return to purpose.

What are banks for? What is banking there to do?

These questions contribute to a clearer agreed definition of purpose that should help shape what they look like.

I think that the Stephen Hester pay packet will bounce back and bite politicians in the ass at election day.

It is again a sign that politicians just can't get regulation right, don't understand the strength of feeling and the public mood at the moment and just don't get it generally.

There is no justification for one person, in a bank owned largely by the public, to be paid a hundred times more than the lowest person in the bank.


Can you please post on the relative possibility that the Iranian woman, Neda Soltan, whom was shot dead by "plain clothed Iranian police officers" was assassinated by a servant of a foreign government rather than the current regime in the country?

The chances are not that remote, given the impact that it could have, the force put upon Twitter by the US government to stay active - thus the Iranian people have an outlet (since none of it was ever mentioned by Iranian news stations).

If you can't beat the system, break it.

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