Now they’re getting their knickers in a twist over a non issue. The cap on Bankers bonuses. Why is it a non issue? Because, per se, it is not the reason why the bubble ballooned out of all proportions and why we are still suffering from the fall out. Particularly in that surreal, irrational place called Euroland.
The reason the bubble blew up and burst in our faces was precisely because of free market economic dogma. Everything had to be deregulated. The market would regulate itself! Only it didn’t. The solution is not a cap on bonuses. The solution is to reinstate all the banking and financial regulations the free market dogma zealots abolished. After all, they did work extremely well, before these fanatics climbed into the ascendance.
But that is precisely why such a fuss is being kicked up over the bonuses. It is a non issue. A red herring to disguise the fact that the free market economic zealots running what used to be the European Union simply do not want to reinstate the regulations that worked. They prefer to sadistically torment the people of Europe through their stringent austerity with NO growth. Which is obviously not working.
So this show of a supposed confrontation between big bad Britain and the holier than though European moral zealots, is just trumped up so that they can avoid dealing with Europe’s and their banks real problems. Most of theme remain insolvent anyway, and should Italy blow her top, and well she might after all, they may well have the fate of humpty dumpty.
Besides as the American Professor Nicholas Economides pointed out, there is no sense in such a cap since it is the easiest thing in the world to get around. So you will not even have achieved any kind of a “cap” on bonuses, even if you do engrave this in stone in the EU.
So think again my pretties in the Ecofin, or else all the kings horses and all the kings men will not be able to put the financial edifice you are trying so strongly to defend to the detriment of people, together again. Ever!