Earlier quoted context omitted.
I think people make the mistake of thinking that the people who get bonuses are easily replaceable. The executive market of people who have experience at these kinds of levels is extremely thin. Your company needs to be attractive to this high echelon of talent. That means keeping a good record of treatment to executives. I think the thought of: “just pay them less or they can leave” is pretty common. But it’s just n…
This isn't just up to the company, the execs can also choose to decline bonuses in order to save their employees jobs. That they don't do that is very telling about the kind of people they are.
Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
331–340 of 346 posts
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#332Earlier quoted context omitted.
I have come to realize that many people are haunted by the constant fear that someone somewhere might be making a profit. I think it's a great thing and a credit to our institutions that millions of citizens of my country weren't evicted last March and April. Who cares if landlords got paid for rent or if a bank received a mortgage payment?
>...Who cares if landlords got paid for rent... Hmmm...unfortunately, most landlords are people who own a single rental, often the one they lived in previously that they cannot sell. By not bailing out landlords (not speaking of institutional investors here that buy up distressed mortgages in cash by the hundreds), you've hurt average-earning middle income citizens. So yes, with the moratoriums, you've transferred we…
So what you're saying is both true (in that it saves average-earning citizens) and false (most of the money went to large corporations like https://en.wikipedia.org/wiki/Mid-America_Apartment_Communit... ).
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#333Directly via bailouts and indirectly via inflation, COVID was the biggest wealth transfer to the rich in history.
This was version 2. Version 1 was the "great recession", when several investment banks found themselves insolvent after cluelessly underwriting an overvaluation of American homes. It had been their custom to play a sort of musical chairs with overvalued assets, unloading them on clients and other victims, but eventually they forgot how that game typically ends. After a small amount of public discussion, it was decide…
My employer was minimally directly effected by the housing market crash, but due to the intermingling that comprises the financial industry everybody was seriously hurt indirectly. They were forced to purchase, by the federal government, a major stock brokerage that was in serious trouble for pennies on the dollar and assume all their troubled assets.
> Representative government" seems fine until one looks more closely at who is actually represented.
When looking at current politics I find your statement incredibly strange. I used to think the Republican Party represented the wealthy and special interests (certain business interests as both major parties have their special interest priorities). That was years ago when they were the stronger and more dominant of the two US major parties, back when they had values and weren’t so hypocritical about them. But now they seemed to have strangely thrown away dominance for a failed bet on populism to energize some new core constituents to the disgust of everyone else. I have trouble finding who is actually represented by that, but then I guess a lot of people have that trouble which explains that parties atrophy.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#334Earlier quoted context omitted.
>via inflation The poor tend to be net borrowers. The rich tend to be net lenders. Inflation makes the poor less in debt by lowering the real value of payback. Inflation helps borrowers.
Not sure this is true. A wealthy person might have a mortgage on a $1M home while the poor are more likely to be renting. To whit, US mortgage debt in 2020 was at $10T while the debt that the poor are more likely to have (Credit Card / Personal Loan / Auto Loan) is a combined $2.5T[1]. The wealthy are often highly leveraged in a variety of ways. Just look at some of the world's richest people – they generally fund th…
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#335Earlier quoted context omitted.
This was version 2. Version 1 was the "great recession", when several investment banks found themselves insolvent after cluelessly underwriting an overvaluation of American homes. It had been their custom to play a sort of musical chairs with overvalued assets, unloading them on clients and other victims, but eventually they forgot how that game typically ends. After a small amount of public discussion, it was decide…
Not exactly. I happen to work for a bank. My employer was minimally directly effected by the housing market crash, but due to the intermingling that comprises the financial industry everybody was seriously hurt indirectly. They were forced to purchase, by the federal government, a major stock brokerage that was in serious trouble for pennies on the dollar and assume all their troubled assets. > Representative governm…
Over most of USA history, both parties active at any particular time serve the interests of capital. There are occasional exceptions (e.g. FDR), but now is not such an exception. It's silly to emphasize the difference between parties, but if we must do so the past two decades in which control of Congress and the presidency has passed back and forth are something of an anomaly. Before Bush the Lesser, the last time Republicans were in any sense "dominant" was under Hoover. The Democrats held the House for twenty consecutive Congressional sessions.
If the stories you've been told, about your bank or about the USA political system or about anything else, don't make sense, then consider the possibility that those stories simply aren't true.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#336Earlier quoted context omitted.
Not exactly. I happen to work for a bank. My employer was minimally directly effected by the housing market crash, but due to the intermingling that comprises the financial industry everybody was seriously hurt indirectly. They were forced to purchase, by the federal government, a major stock brokerage that was in serious trouble for pennies on the dollar and assume all their troubled assets. > Representative governm…
Were you working for the same bank 14 years ago? That would be an impressive sort of consistency. I think maybe not, however, because if you had been there your two-sentence synopsis wouldn't be quite so muddled. Did your bank hold assets the book values of which decreased in response to the events of 2007-8, or did its liabilities increase unexpectedly for the same reason? In that case, your bank was hurt directly.…
> Has anyone ever had to be "forced" to purchase anything for "pennies on the dollar"?
There is typically not much interest in the purchase of something with a high negative value even if highly discounted. That is why it was mandated by the government, so that a large solvent organization could assume another large groups insolvency before the insolvent group closes and strikes their assets.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#337Earlier quoted context omitted.
It's the power of capital vs the power of income. If you have a high salary and no ability to save for a deposit then property can be unaffordable and you're stuck paying someone else's mortgage. If you have a 5% deposit saved and a high salary, you still can't afford a home because lots of people are in your position and have driven up house prices and rates and leverage available sucks. If you have 20-25% down and…
> If you have a 5% deposit saved and a high salary, you still can't afford a home because lots of people are in your position and have driven up house prices and rates and leverage available sucks. I keep hearing this trope and reading about it. Not positive why it gets repeated. It doesn't take long to do a realtor.com or trulia search to find a shit-ton of affordable homes. It seems to me that, there's a certain cl…
The mortgage rates on 5% down are like 3.5% and the mortgage rates on 20-25% down are like 1.5%, so effectively your monthly mortgage payment could get 50% higher with a 5% deposit.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#338Earlier quoted context omitted.
With weaker demand rents would have actually fallen a lot more than now. That in turn would have an impact on asset prices in the long term. Will it be fairer to employees ? I don't know, there will be lot more pain for employees without government intervention. However with Quantitative Easing or bailouts and COVID loans means the rich are not paying the same price as well, that is why rich are becoming richer, poor…
> With weaker demand rents would have actually fallen a lot more than now In this sentence, is "weaker demand" euphemism for mass homelessness?
While rents have dropped a bit here, it more likely to get 2 months rent free rather than actual drops.
In a tough economy I would expect rents to drop and in turn asset prices as well.
The 6 trillion pumped in has to go somewhere, if it’s not inflation of consumer goods, it is inflation of capital goods. This has made it incredibly harder for mobility and wealth inequality
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#339Earlier quoted context omitted.
Not exactly. I happen to work for a bank. My employer was minimally directly effected by the housing market crash, but due to the intermingling that comprises the financial industry everybody was seriously hurt indirectly. They were forced to purchase, by the federal government, a major stock brokerage that was in serious trouble for pennies on the dollar and assume all their troubled assets. > Representative governm…
Were you working for the same bank 14 years ago? That would be an impressive sort of consistency. I think maybe not, however, because if you had been there your two-sentence synopsis wouldn't be quite so muddled. Did your bank hold assets the book values of which decreased in response to the events of 2007-8, or did its liabilities increase unexpectedly for the same reason? In that case, your bank was hurt directly.…
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#340Earlier quoted context omitted.
It's the power of capital vs the power of income. If you have a high salary and no ability to save for a deposit then property can be unaffordable and you're stuck paying someone else's mortgage. If you have a 5% deposit saved and a high salary, you still can't afford a home because lots of people are in your position and have driven up house prices and rates and leverage available sucks. If you have 20-25% down and…
> If you have a 5% deposit saved and a high salary, you still can't afford a home because lots of people are in your position and have driven up house prices and rates and leverage available sucks. I keep hearing this trope and reading about it. Not positive why it gets repeated. It doesn't take long to do a realtor.com or trulia search to find a shit-ton of affordable homes. It seems to me that, there's a certain cl…
Property in the UK is more like 9x.