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Bankers Cry Over ‘Restricted’ Bonuses
Big Bank brings nation’s economy to the breaking point. Big Bank begs, pleads, or threatens the government in to giving it a massive bailout, (of which the citizenry disapproves nearly unanimously). Big Bank proceeds to offer extravagant bonus packages to its employees, which largesse is financed 100% by the taxpayers. It should come as no surprise that the general public, aghast at being bled dry in order to provide for some C-Suite bankers’ Bentley or Rolls or vacation home on the Riviera, cries “Foul!” The most appalling thing about the whole situation is the banks’ responses: generally they argue that “If we don’t give huge bonuses, we’ll lose our employees!” Royal Bank of Scotland Group Plc, recipient of the world’s biggest taxpayer bailout, said the British government’s “very restrictive” control over 2009 … Read entire article »
Filed under: bailout, Employment & Labor, Rants
The Cost of Real Estate
There is all sorts of land in the world, but precious little of it abuts world-class ski resorts like Park City Mountain Resort, in Park City, Utah. And there are all sorts of houses of all variety of quality in the world. But a small house, adjacent the ski slopes or near the pedestrian Main Street in Park City might fetch a very handsome price, compared to say, a similarly appointed property in Algonac, Michigan. The house in Park City didn’t cost more to build. It doesn’t cost more to maintain, so why would anyone in their right mind pay the equivalent of one month’s mortgage payment to (gasp!) rent a house in Park City? This apparent discrepancy can’t be reconciled without a functioning market*, where individuals are permitted to dispose … Read entire article »
Filed under: Economics Lessons, Property Rights