Re:Nassim Taleb: End Bonuses For Bankers
by albertsun on Tuesday November 08, 2011 @06:59PM
(#3213510)
It sounds like you're responding to the headline and not the article. Taleb didn't say anything about bankers being paid too much (or "so much"). His argument was that bonuses encourage risk taking and that having bank compensation be less variable (i.e. base salary would go up, but not fluctuate) would lead to less risk taking.
Re:Nassim Taleb: End Bonuses For Bankers
by rhizome on Tuesday November 08, 2011 @06:06PM
(#3213334)
Well, it used to be that banks were prohibited from taking risks. 100 years ago banking was a boring job.
In fact 100 years ago it was quite the opposite.
Re:Nassim Taleb: End Bonuses For Bankers
by weeksie on Tuesday November 08, 2011 @06:48PM
(#3213471)
Try 30 years ago.
Re:Nassim Taleb: End Bonuses For Bankers
by nickik on Wednesday November 09, 2011 @07:14AM
(#3215183)
I think there is.
1) Don't save them and make sure the understand that.
2) Take them you of the money creation process.
3) Stable Money (Gold is an example or something like bitcoin (an algorithem))
"Why can banks pay their employees so much?" - because they make so much money, and have so few employees.
"Why can banks make so much money?" - I'm not sure but it seems like banks can take risks, but pass off the real risk to others.
"Why can banks take risks, but not have to worry about the downside of those risks" - ...
I think if you follow that train of thinking you'll get to some structural problem in our current system. It doesn't seem like there is an easy fix here.