Ok,
before you start saying, "Peter, you were wrong about just about
everything," let me explain…
In
2008 an 2009 I was rather critical of governments around the world bailing out
banks because they simply don't create wealth.
Sure, I like to be able to get cash out of the ATM in Bangkok from my
account in Australia. But getting donged
$23.16 for a $300 cash withdrawal? Come
on.
But
the point was that banks that lose billions and trillions of dollars simply
don't deserve to exist. Let the bastards
die, I say. But despite my strongly
worded message, over 700
banks got bailed out.
It was
only this weekend that I had my epiphany.
Banks NEEDED to be bailed out.
As I
was sitting in the corporate box of a bailed out bank at the Hong Kong Sevens,
I realized that if it weren't for the generosity of governments (ok, tax
payers, but they didn't really have a choice) I'd actually have to pay for a
ticket. And it would be in the public
stands slumming it with tax payers.
Yeeaaach.
I'd
also be missing the free food, wine and beer offered by this generous bailed
out bank to clients, of which I'm not one, but that's not quite the point is
it? The point is, if it hadn't been
bailed out, I would even have to pay for my own beer and wine!
I
discussed this problem of paying for my own beer when I don’t have a corporate
box available with my banker friend and asked him how he manages to survive
financially, living in a country with far higher beer prices than
Thailand. His answer: "I can't
remember when I last paid for a beer. I
always expense them." For those of
you who haven't been in banking before, that means, "I took a client out,
or claimed it did, and put it down as client entertainment. The bank will reimburse me the full amount,
no tax payable."
Thank
god for that. I mean, you can't have
bankers paying for their own beers.
Heck, that would cost up to $30,000 a year, or 10% of his salary.
And
I'd be missing out on my corporate box at the Sevens.
Thank
god for bailouts!
Cheers,
Peter.
