Will EU burst the 'Bonus Bubble'?

[NotnotgnimmiJymmiJ]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

How about a taxation of like 70 or 80% above a certain level and maybe we can close our deficit and discourage high bonuses?

[Greed and Death]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

and said CEO moves bank head quarters over seas to avoid the regulation.
net loss of revenue and capital.
though a net benefit for the 3rd world I suppose.

3rd world? Nah, will not happen. Today, they already use all kind of offshore techniques to avoid taxation. Like I said, governments know this too and will work out proper solutions.

Yes because offshore tax havens have been eliminated.

Really? A Bahamas, Barbados or even Jersey is still rather popular among CEO's. They are certainly not eliminated (yet).

I doubt they will ever be eliminated, not after the treatment Nauru received when they ceased to be a tax haven.

[Greed and Death]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

How about a taxation of like 70 or 80% above a certain level and maybe we can close our deficit and discourage high bonuses?

back to the 1970's. All that would create is inflation as the rich hide their income in commodities to avoid taxation.

[Hairless Kitten II]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

How about a taxation of like 70 or 80% above a certain level and maybe we can close our deficit and discourage high bonuses?

back to the 1970's. All that would create is inflation as the rich hide their income in commodities to avoid taxation.

It's not that the EU will attack high bonuses at such. Currently the bonus is often linked with short term goals and it is also guaranteed (whatever the company is doing, some bonus will be paid). Sometimes the bonus can be higher as the actual salary and in other cases the correlation between a bonus and the actual profit of the company is sick.

And that’s what the EU will ban. So the rich can sleep well: they will still earn more than you and me.

[Greed and Death]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

How about a taxation of like 70 or 80% above a certain level and maybe we can close our deficit and discourage high bonuses?

back to the 1970's. All that would create is inflation as the rich hide their income in commodities to avoid taxation.

It's not that the EU will attack high bonuses at such. Currently the bonus is often linked with short term goals and it is also guaranteed (whatever the company is doing, some bonus will be paid). Sometimes the bonus can be higher as the actual salary and in other cases the correlation between a bonus and the actual profit of the company is sick.

And that’s what the EU will ban. So the rich can sleep well: they will still earn more than you and me.

What EU law presents the rich from claiming compensation in Gold eagles and using the declared face value of the gold eagle (50 dollars for each Oz of gold) ?? Then only paying capital gains when they sell it.

[Hydesland]

The current bonus system is partly the reason why the system collapsed, so they will fix it.

At best, it was a very minor contributing factor, it most likely had no effect at all. There is absolutely no reason to just flat out cap bonuses, the problem isn't to do with the money they earn, but why they earn. If they're earning money despite making demonstrably irrational decisions, that needs to change. A blanket cap on bonuses wont help anything without this, and will just make bankers salaries go up.

Less regulation? That's another reason why we are in a crisis. The bank world needs an authority like FDA to check every new financial product.

Can't you actually look at things objectively? Can you only communicate in talking points you see in the media? He's saying that small banks and hedge funds don't need much regulation because if they collapse it doesn't have a serious effect on the economy.

[Hairless Kitten II]

The current bonus system is partly the reason why the system collapsed, so they will fix it.

At best, it was a very minor contributing factor, it most likely had no effect at all. There is absolutely no reason to just flat out cap bonuses, the problem isn't to do with the money they earn, but why they earn. If they're earning money despite making demonstrably irrational decisions, that needs to change. A blanket cap on bonuses wont help anything without this, and will just make bankers salaries go up.

Less regulation? That's another reason why we are in a crisis. The bank world needs an authority like FDA to check every new financial product.

Can't you actually look at things objectively? Can you only communicate in talking points you see in the media? He's saying that small banks and hedge funds don't need much regulation because if they collapse it doesn't have a serious effect on the economy.

I don't think it was a minor contributing factor. It was short term politics. They didn’t care about the long term . Anyway, I’m interested in your opinion about the causes of the current world crisis.

Even relative small hedge funds can do a lot of damage. I prefer safety above blind wild capitalism and thus I feel that there's room for a financial FDA. What's wrong with that idea? Would you like it that medicines are released just with the R&D notes of the manufactory? Would you trust that?

[Yootopia]

Luxembourg Prime Minister and Eurogroup head Juncker said Europe should act on bonuses "whether the Americans are with us or not... the Americans will not be able to sit on the sidelines."

That's one of the stupider things I've heard from a head of state in a while. I don't really see why America will be compelled to act, see this whole climate change malarkey.

[Yootopia]

I don't think it was a minor contributing factor. It was short term politics. They didn’t care about the long term.

The Thing Is, when people are trading on percentages of percentages several times a minute, playing the long game is kind of a bad idea unless you are exceptionaly sure that your investment will pay off.

Anyway, I’m interested in your opinion about the causes of the current world crisis.

The ridiculous ratios people were leveraging on. 20:1, maybe 50:1 in some cases. If a couple of links in your horribly long financial chain break, you are in a shitload of trouble, something that caught up with the traders basically when Lehmann Brothers went down.

Even relative small hedge funds can do a lot of damage.

I dunno, hedge funds mean that in any crisis you will at least be making some money, which is pretty crucial for stuff like pensions schemes to work.

I prefer safety above blind wild capitalism and thus I feel that there's room for a financial FDA. What's wrong with that idea?

Quite a lot. OK, people need to be protected from people completely taking the piss and offering falsified stocks and shares etc. (although imho anyone who gets conned by a Ponzi scheme is a cretin and deserves to be ripped off), but if you take the possible massive gains to your huge risks out of the financial markets then people won't bother so much. It'd be like telling everyone in the betting shop that they can only bet on 3 different things, and only a tenner on each. OK the average punters would still be at it, but the die-hard betters would just leave for somewhere freer.

Would you like it that medicines are released just with the R&D notes of the manufactory? Would you trust that?

No, but then medicine is a different issue completely to trading in financial services. You are meant to be reducing the risk of everything going on, to have a fixed outcome in every case of "people getting healthier". The financial services industry is the equivalent of some mad scientist trying to create a supersoldier serum out of a variety of crazy coloured vials and such.

[Hairless Kitten II]

This is silly unless the government bought the banks (during the bailout) then it has no right dictating salary caps.

It's rather easy to work out: just put a taxation of 100% above a specific salary.

You have a minimum speed limit on highways in my country, but a maximum as well.

How about a taxation of like 70 or 80% above a certain level and maybe we can close our deficit and discourage high bonuses?

back to the 1970's. All that would create is inflation as the rich hide their income in commodities to avoid taxation.

It's not that the EU will attack high bonuses at such. Currently the bonus is often linked with short term goals and it is also guaranteed (whatever the company is doing, some bonus will be paid). Sometimes the bonus can be higher as the actual salary and in other cases the correlation between a bonus and the actual profit of the company is sick.

And that’s what the EU will ban. So the rich can sleep well: they will still earn more than you and me.

What EU law presents the rich from claiming compensation in Gold eagles and using the declared face value of the gold eagle (50 dollars for each Oz of gold) ?? Then only paying capital gains when they sell it.

I'm sure that the coming laws will deal this issue. Currently, many CEO's and similar species already get bonuses in stocks & other kinds of benefits. Do you really assume that the US & EU governments are not aware about this one?