Comments on: Banks making bumper profits – Again!

By: requiredreading

requiredreading — Tue, 21 Jul 2009 15:30:42 +0000

How exactly did they make the profits? "capital raising"? What does that mean? And does it mean that, now that their profits are up again, they can raise interest rates again, so that now the government can borrow money from the banks again in order to finance their other bail-outs? At higher interest rates? So that in the end, instead of paying interest back to the people, actually it is again the people that will be paying interest to the banks? As well as having lost jobs and all before? I do hope that my reasoning is faulty.

By: mahantesh

mahantesh — Tue, 21 Jul 2009 14:21:55 +0000

Hello Richard,

I like your show very much. I did not know much about economics and learning a lot by watching your show. Keep knowledging people like me.

Thanks.

By: John Elkass

John Elkass — Tue, 21 Jul 2009 08:25:11 +0000

I am in favor of nationalizing all the banks in the USA for one simple reason: they are a conduit for the business corporations and community to get financing. They're not supposed to come up with all these imaginary schemes which could endanger the hard earned cash of every citizen which we unfortunately have seen in the last year or so. banks are not like corporations; they're entrusted with peoples' money and are fiduciary to them. Their task should be and should always be to do all they can to secure this money in the public's interest. Corporations on the otherhand are risk takers which drive our economy; these use their own money and if they lose, they only use their money. Now, you might say that these subsist on loans from the banks; that's true. But, banks shouid be very cautious in lending them. They should demand greater transparency than ususal.

I am happy for these banks to leap back on teh profit scene but not at all with them going back to the status quo that cost us millions of jobs and depleted our pensions coffers.

It's time something more effective be tried and tested so that we never again relive the tragedies of the past years.

By: satish kaul

satish kaul — Tue, 21 Jul 2009 03:34:40 +0000

All bonuses & fringe benefits must be taxed saperately.
In the era when Mr. Morarji Desai was our prime ministerin india,(in mid `70`s) all taxes including wealth & gift tax was a ROCKING 101%
of the income.
It can get that absurd.

By: Onno Frowein

Onno Frowein — Mon, 20 Jul 2009 09:56:41 +0000

Nobody and still nobody have explained in objective and economic terms why governments were in such a rush to bail out the banks at the expense of taxpayer's while they continue loosing their jobs and their homes.
My guess is that governments need the banks more than the people to support their massive spending to finance this debt. Who else would?
Washington has changed allright. Now the banks and the Harvard clique have taken over the Obama administration. A lot of words and rhetoric by the President, Bernanke, Geithner and Summers but no results.
Another example of discrimination appeared when the CEO's of the Big hree automakers were critisized for coming to Washington in their private jets for their hearings in December. Nobody even mentioned it when the CEO's of Wall Street come to Washington. On the contrary now the bankers are fighting the US Government regarding payback of the billions in bailouts. This is not only the typical Wall Street arrogance but bluntly a slap in the face of all American taxpayers.
Mr. Obama is responsible for bankrupting the USA and possibly weakening its worldwide economic leadership. China is most anxious to take over this role. China invested $ 600 billion directly in its industries and ordered its banks to invest. Result: economic growth first 6 months of 7.9%. President Lin Tao travels the world to strengthen China's supply of natural resources and oil not to hold empty speeches like Obama.
Obama's popularity in the meantime has dropped to the same level as Bush. The damage by Obama, however, will last for generations!

By: Leth

Leth — Mon, 20 Jul 2009 01:14:05 +0000

Shareholders, shareholders, shareholders. They're the very reason why there's a financial turmoil today.

These shareholders have been the God's of all businesses. Please the shareholders, work for the shareholders, hit our targets for the shareholders, push our revenues higher for the shareholders, exceed the shareholders' expectations.

This is the very cycle that brought down the global economy to its knees:
-Shareholders push the Board
-The Board push the CEO and his executives
-The CEOs and the executives push the senior management
-The senior management push the middle management
-The middle management push those who do the real work, the front liners
-The front liners are forced to go beyond what is right: How? Sell more and more stuff that are beyond reason like these toxic debt instruments that lead to the crash. They are forced to meet unreasonable expectations that start all the way from the top: THE SHAREHOLDERS.

By: jane

jane — Sat, 18 Jul 2009 22:22:26 +0000

hey
i just want to say what an amazing show this is!
richard is such a good presenter – the best
keep up the great work
and keep ringing the bell – its really funny!

By: Wes

Wes — Fri, 17 Jul 2009 17:43:45 +0000

At first glance once would rightly assume (and cry out) GREED! ... and yes, perhaps some of these Bankers' earnings may seem to err on the side of exorbitance – but ...

Before we decree judgement – remember, it was not directly (I chose this word intentionally) the Banks (and Bankers') fault the economy collapse upon us. The much ballyhooed habit of American People

(Americans exemplify this trait most directly but let be fair – others around the world do so as well)

to consume, consume, and consume is the true perpetrator. The bankers were simply the facilitators, the enablers if you wish. If they did not act as such – I guarantee that many in the American public (private citizens as well as public servants and politicians and/or lobbyists) would have been up in arms about the "greedy bankers withholding liquidity and stifling progress".

If you think it is ok to pay ever-increasing ticket prices to football, basketball, and baseball games – only to see your hard earned dollars (in the millions) go to “undeserving” athletes who only seem to excel at spending it lavishly (and often times foolishly) ~ then you must stop and review the facts before decrying judgement on people who actually make your way of life possible (LeBron may be the King, but he won’t help you get that dream house you’ve always dreamed of!)

By: Felix Wingert

Felix Wingert — Fri, 17 Jul 2009 17:28:27 +0000

I think it's a positive signal to the whole economy, but we should also have a look from where does the money come from? Just a half year before, the banks like Goldman Sachs and JP Morgan had really big problems, and now? they make bumber profits. How does this work?
Is it just because of the new accounting policies, or is it a "real" profit and not just cutting away bad stocks,etc. from the balance sheet?

By: João Luiz Pasqual

João Luiz Pasqual — Fri, 17 Jul 2009 16:40:46 +0000

Hello, Richard!

I wonder what was your response to Emerson Paiva, will banks continue to turn their back to others like Coffee Republic?

Blessings from Brazil