Weird conversation about Econ crisis
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19-12-2013, 05:10 PM
Weird conversation about Econ crisis
So I was just sitting at work when this girl added me on Facebook.
She said she accidentally added me but she needed someone who could answer questions about the 08 Econ meltdown.
So she started asking me questions, she said her father was a Lehman banker (investment, not mortgage) and she talked about bonuses, lifestyle, told me her daddy got a £18.000.000 bonus last year.
I didn't really believe anything she said, but I had nothing better to do, so I continued answering.
The conversation wasn't very fluent, it kind of seemd like I was talking to a bot.

So at about 21.30, the questions stopped. I got home at 23.30 and it turns out she even blocked me on Facebook.
Or maybe the account was removed, not sure. Really weird.
Unfortunately the conversation was in dutch, so if you'd want to read it I'd need to translate it.

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19-12-2013, 09:07 PM
RE: Weird conversation about Econ crisis
Sounds weird. Why doesn't she add her daddy about the economy crisis?
If you would post it, I would be able to read dutch.
But this is probably one of those mysteries that will never be solved.
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20-12-2013, 04:09 AM
RE: Weird conversation about Econ crisis
Quick Google translation with minor edits.

HER - hee
ME - good evening
HER - sorry I made ​​mistake was to have someone with whom I had discussions on bankers' bonuses at banks bailout with billions in state aid do you think that was outrageous?
ME - I think that should have Included that in the law
Your name sounds familiar
HER - I ask because since my father was an investment banker at Goldman Sachs Without millions for bonuses, the bank will have a brain-drain. The industry is built on bonuses.
ME - I've heard that one before. I am for a completely free market , everyone makes his / her choices . The bank must choose whether they offer bonuses or not. And the government must act as they want .
The problem is that the bursting of the mortgage bubble for years was coming , the signs were there. If more preparation was made, ​​they wouldn't have needed a bailout.
Even now, not all banks needed a bailout.
HER - Well my dad and his colleagues did not lose billions on purpose. Until 2007, everything went great. The billion profits were higher every year and bonuses OA my father there seemed nothing wrong, then suddenly everything collapsed. My father says no one had seen it coming.
ME - Investment Banking as your father does is of course a completely different branch as mortgages ( which was the main problem ) .
But housing prices continued to rise disproportionately , and the amount that could be borrowed even without downpayment , was always increasing for the same income .
So there was too little risk management .
Well that system was could handle losing one or two banks, but no one had foreseen that AIG had to pay out THAT much itself stood on the verge of collapse . All mortgages were insured
If all constructions with Credit Default Swaps were better reviewed by all parties it would have been a different story .
HER - any idea how high his bonus was?
ME - Do I want to know?
HER - haha guess once
ME - An investment banker who has been employed and baking has been profitable .
And Goldman in Europe.
5M ?
Or do you mean something anually?
HER - annually yes
ME - no idea , six high figures?
HER - yah guess once
ME - I really have no idea or perspective .
My bonus this year was 950 euros , I will most likely be jealous .
HER - 18,890,000 pounds
ME - Damn
Half to the tax authorities.
HER - absurd?
ME - Absolutely, but that's what you get in a free market .
One man with 18M pounds and 18M people without a pound of food.
That's why the Cold War was fought.
HER - you can but bankers are there not doing less risky and more equitable investment , they just want to bring in as much money as possible so that their bonus is as high as possible , and they can buy the latest Ferrari and a yacht in Saint-Tropez a home the Bahamas penthouse in New York , expensive vacations . They just want to maintain their luxury lifesyle , they often live in penthouses of 5 million or more , at least 6 cars and often have a woman addicted to shopping and love expensive designers
ME - That is the prevailing view yes . If you grew up in that circle you can tell if that is really true or not .
HER - decadent ?
ME - They made good choices.
If I knew about that kind of money going around 10 years ago, I wouldn't have gone into IT.
HER - Should he pay back=
ME - No.
1. He has a contract of employment in which bonuses are determined. Which is already subject to legislation .
2. He worked in a completely different branch than mortgages and had little to do with causing the situation .
3. Who would have to do that? The government? They might not stop at bankers and dictate everyone´s pay... dangerous precedent. (Slippery slope)
HER - do you understand the fuss about bonuses ?
ME - Yes, mostly jealousy . Most people work 40 hours for 10-15 euros per hour .
And there's a fart behind a desk that gets 18M pounds for eating good food and picking his nose
HER - any idea where those bonuses go ?
ME - What you mentioned earlier , houses , villas , shopping , cars , expensive suits .
HER - decadent ?
ME - That depends on the person . One might burn it, the other spent it smart .
HER - read this again
ME - Paid by bailoutmoney?
HER - yeah
ME - Yeah , that's the only disappointing note . But there was nothing that was not allowed , TARP just didn´t have any rules, if it did: Congress wouldn't have passed it.
And I 'm freaking jealous of those AP watches . Those things make Rolex watches seem look like Walmart
ME - Well, that's just sad and provocative . But they are taking a risk. An angry crowd can have ugly consequences .
HER - what do you think of it ?
ME - Yes , there are limits.
Did the crowd get back at them?
HER - we have a house in the Hamptons (say t' Gooi of New York ) and a few years ago we had a party in the evening and there happens to be a 'bankers march ' long come a kind of journey from evil destitute americans along the million dollar earning bankers to demonstrate against the bonuses and then my mother Bentley scratched and smeared with slogans like " the game is about greed " and " jail the banksters ' , have hundreds of people in our gate stood a few hours
ME - That must have been scary.
HER - yah comparison was drawn with the French nobility
ME - And the Tsar , yeah , I can imagine .
HER - Why?
ME - Because the average angry mob does not know the difference between different types of bankers . They are incited by someone .
In France: Republicans , by Bolsheviks in Russia and in New York by the recently unemployed.
HER - So bankers to jail ?
Confiscate possessions?
ME - No, what they did was not against the law , by decades of deregulation .
The only thing you can do is not fall back into the same cycle . Crises like these occur every few decades .
Those who do not learn from history are doomed to repeat it .

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