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angelcontrarian

Listed below are comments made by angelcontrarian between Thursday, 12th February 2009 and Thursday, 12th February 2009.

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Rio, China and British investors 11:43am on 12 Feb 2009 your best post for a long long time robert.
I agree on both points. But can we explore the first one a little more for a start - fund managers seem to have got off scott free from all this mess, despite the fact that their herd-like behaviour and short term focus on shareholder value (ie profits) was instrumental in blowing up the bubble.
And why? Because they got massive annual bonuses, based on discrete annual performance. Sometimes this means beating the index or peer group average (hence herd like behaviour most of the time) OR hitting the top quartile, which means taking massive risks.
Massive bonuses based solely on short termism, without a thought to the long term consequences of their actions. Sound familiar at all? The fund managers and the bankers were all in this together, laughing as they went along.

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