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drew_lg

Listed below are comments made by drew_lg between Tuesday, 18th November 2008 and Monday, 8th June 2009.

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Sugar and Hornby: why they're hired 3:40pm on 08 Jun 2009 I will not be buying from Boots whilst he is there.
The case for bonuses 6:42pm on 09 Feb 2009 Huge wages could only ever be justified by 'Tournament Theory'. It meant that junior employees would be inspired to work hard in the hope that one day they would be at the top of the business earning mega bucks.

The only basis on which to pay an individual more than £300k per annum is if they could predict the future - which humans can not.

Even the most creative individuals cannot repeat unique creativity again and again. As an example, could Time Berners-Lee now invent something as big as but different from the internet?

None of these bankers, or anyone else earning large sums is really worth it. Running a business, no matter how large is just not that complicated. They could easily be replaced by the next guy down. If not, where is the science to prove their genius?

If they were truly unique surely their methods should be studied, written down and taught. If you put these guys in a lab you would find that they were not the brighest people. They would have IQ's in the 130-140 coupled with a risk taking personality.

If you have ever read a business biography around page 50 of 500 there is an event of the most unbelievable dumb luck you ever saw. Like cheating an old granny out of her shares.

So no, bonuses simply do not work. They never have. These businesses have been rewarding their employees for the luck of circumstance - even the modestly paid.

In the eighties there was a revolution in Quality Control that the west learned from Japan. Which incidentally they were taught by Demming the American mathematician. It seems that we need a similar period of reason within businesses. Reason and facts.

The presumption has been that financial alchemy was real - it was not, nor will it be.
A British subprime mess 4:44pm on 04 Dec 2008 What is the CML doing being unhappy with you? You are a journalist? (Excellent one)

What is the government doing telling the Banks to lend money without regard to commercial sense?

Why is the Bank of England doing lowering interest rates encouraging borrowing when it is borrowing that got us here?

It seems that in the face of reality all these agencies are waving their arms.

Remember the Singapore Grand Prix when after his pit stop the Ferrari mechanic released Felipe Massa whilst the fuel hose was still attached. As the car leapt forward the mechanic stuck his foot out as if to restrain it.

Yes, that is a good idea. Use your foot to stop an 800 horse power Ferrari.
Taxpayers' mortgage guarantee 5:53pm on 03 Dec 2008 Hang on a minute, I was talking to a chap the other day who has forty B&B interest only 'borrow to let' mortgages.

He told me that he is sitting on £1m of unrealised profits - when the market returns to the normal 2007 levels - fundamental demand you know. I figure he had 10% equity at that point.

Will he be able to roll over 40 mortgages? Or just one? Is there an upper number of mortgages? What about the Wilsons 900 mortgages?
Taxpayers' mortgage guarantee 5:48pm on 03 Dec 2008 Mr Prudent a hardworking taxpayer who has no debt, has savings, has a pension plan, has lived within his means on a private sector job and taken the hurt of those flashing their 'unrealised profits' from asset appreciation - raises his hand and says, "Mortgage Guarantee for the feckless, just put it on my bill Mr Brown"
RBS, repossessions and recovery 09:18am on 01 Dec 2008 So the prudent will be subsidising the imprudent for years to come with higher taxes for decades.

What about the 'borrow to let' 'investors' and their dozens of properties. Why should I as a prudent taxpayer bail them out - when all they have done is prevent my children buying a house with their greed?

The world really is upside down.
Taxes to fall and then rise 5:00pm on 21 Nov 2008 No:5 "We should be worrying about how we can replace the money which was generated by through the City of London with something that generates sustainable and tangible value e.g. Engineering or Manufacturing".

An excellent point, but how is any British company going to catch up with German quality? It would take two working generations to come close.
Can Darling kickstart lending? 09:42am on 20 Nov 2008 13 "In fact, if banks aren't fulfilling this basic recycling service, then injecting more capital into them is actually a waste of a scarce resource"

Rescuing the Banks has a practical point - keeping the cash machines working so that there were no riots outside Tesco's. It was that serious six weeks ago.
Can Darling kickstart lending? 09:14am on 20 Nov 2008 "From housebuilders, to national estate-agency chains, to construction groups, to property investors, to retailers, to restaurant and pub chains, indebtedness is at worryingly high levels."

That covers 95% of my customers.

So that is why my turnover has dropped 80% since April. So now what?

These businesses are the customers for most of the small firms in the UK. Small firms may not be in debt but who are they going to sell to?
Barclays is a bit sorry 10:00am on 18 Nov 2008 No 14: Right on. The situation is so bad it almost defies description. The whole thing has become surreal.

Since the 1990's the UK has had a series of good fortunes. North Sea Oil, Chinese Imports, Computer Age, Carry Trade and Financial Service. The corollary of these good fortunes is that the UK believed that it could walk on water. Whilst we have benefited from these it has created an indigent environment.

There is no cavalry coming over the hill this time. It will be much worse than Japan - they had exports.

http://www.qmh.co.uk/daily_express.html

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