End Bonuses For Bankers

[Pigeon]

"NYU risk engineering prof Nassim Nicholas Taleb has a suggestion that won't sit too well with the banksters. In his NY Times op-ed, Taleb writes: 'I have a solution for the problem of bankers who take risks that threaten the general public: Eliminate bonuses.' The problem with the bonus system, Taleb explains, is that it provides an incentive to take risks: 'The asymmetric nature of the bonus (an incentive for success without a corresponding disincentive for failure) causes hidden risks to accumulate in the financial system and become a catalyst for disaster. This violates the fundamental rules of capitalism; Adam Smith himself was wary of the effect of limiting liability, a bedrock principle of the modern corporation.

Link

Just like TARP, they get the profit, the tax payer got the loss.

[Escape_Artist]

So interfere with the free market's decisions on how to pay employees and ... boom.. that solves the problem...

What's missing from his logic? A person who takes risks and looses is not as likely to get a bonus as those who do and profit.

Why would a corporation like ... hmm ... one of the two big to fails.. take such risk? Because they bought off the politicians that are going to bail them out at the expense of the taxpayer... that's why they get the big bucks... fuck complaining about overpaid CEO's and start complaining about the parachute the government gives them to jump out of the 100th story window with out any fear or repercussions.


Seriously with the filter on the word f (_) C K?... what are we a bunch of 5 year olds?

[Pigeon]

Seriously with the filter on the word f (_) C K?... what are we a bunch of 5 year olds?

Go to your UCP and turn off the word filter.

[Egg]

So interfere with the free market's decisions on how to pay employees and ... boom.. that solves the problem...

What's missing from his logic? A person who takes risks and looses is not as likely to get a bonus as those who do and profit.

How about those people who take risk, ruin the economy but make the bank money? Should they get bonuses?

[lkwalker]

So interfere with the free market's decisions on how to pay employees and ... boom.. that solves the problem...

What's missing from his logic? A person who takes risks and looses is not as likely to get a bonus as those who do and profit.

Why would a corporation like ... hmm ... one of the two big to fails.. take such risk? Because they bought off the politicians that are going to bail them out at the expense of the taxpayer... that's why they get the big bucks... fuck complaining about overpaid CEO's and start complaining about the parachute the government gives them to jump out of the 100th story window with out any fear or repercussions.


Seriously with the filter on the word f (_) C K?... what are we a bunch of 5 year olds?

If you think like a five year old you're a five year old. You need to worry less about a fucking word filter and more about the meaning of 'profit' per se. Logically, it is nothing more than theft. All the world belongs to all the people in equal measure regardless of the pernicious games some of those people have devised to sate their own avarice. Digest that and get back to us.

[Egg]

Capitalism is no more than sugar coated legalized violence.

[lkwalker]

Hahahahaa! That too.

[Egg]

We grew up with it so we think it's.... moral. It isn't.

[lkwalker]

Capital destroys spirit.

[Egg]

No, it bankrupts it