allowing destabilising and economically valueless financial transactions to balloon in value to many times world GDP
Come along now, even you stayed awake long enough in the economics lectures to know that this is impossible.
GDP measures value. So it\’s impossible for the value of something which makes up GDP to be greater than GDP itself.
What you mean is that the turnover of the financial markets is greater than world GDP.
If you cannot get those sorts of things right time to hand in that economist\’s secret decoder ring I fear.
Bankers\’ bonuses unite everyone in outrage – from captains of industry bewildered how top bankers can earn so much more than they do to the newly unemployed who wonder what they have done to deserve poverty and hardship while the moneymen pocket millions.
Noo, don\’t think so really. I\’m certain that a very large chunk of this outrage is the upper middle classes who populate the columnists\’ positions getting outraged that those they saw as duffers when they were at uni with them earning multiples of what the columnists do.
It\’s the pulling away of bankers\’ incomes from the incomes of the chatterati which hurts, the way in which they are now 10 to 100 times the median wage rather than just the five times said median earned by an Observer columnist. Or the seven times it earned by the man who drove the Work Foundation into the ground, eh Willy?
Everybody in high finance knows the risk, but, paradoxically, the bailouts of 2008 were almost too successful. There was no slump; creditors and bank depositors lost no money; the system survived and recovered.
My word, that is excellent then. So we can indeed deal with banking system crises and thus no change is necessary?