The Cellar - When Will Yao Jingyuan disappear?

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When Will Yao Jingyuan disappear?

Yao Jingyuan former Chinese statistics bureau spokesman said at a Saturday summit on China’s economy held at Nanjing University....

Quote:

“Banking in China has become like a highway toll system,” “Banks charge every time money goes through them.

"With this kind of operational model, banks will continue making money even if all the bank presidents go home to sleep and you replaced them by putting a small dog in their seats.”

Yao added that there were no longer any real bankers in China, and that most bankers had become “freeloaders” who latched onto the wide profit margin they could enjoy by taking advantage of interest differences between deposits and loans.

Where does China send people that embarrass the powers that be? Mongolia? Tibet? North Korea?

:idea: Or maybe The Party is using him to embarrass the bankers who have gotten too rich and powerful?

When will Ri Sol-ju disappear?
She's getting thinner.

Quote:

Yao added that there were no longer any real bankers in China, and that most bankers had become “freeloaders” who latched onto the wide profit margin they could enjoy by taking advantage of interest differences between deposits and loans

Actually, that is how banking is supposed to work. If this individual is complaining that the margins are too high, then this is a regulatory and/or system failure. Competition is supposed to keep the margins reasonable and the government is supposed to prevent collusion between banks.

The bigger risk is a move to undisclosed or under disclosed fees. In the US, where competition has thinned the margin between lending rates and rates of return, banks are getting more and more income from fees. This is the first line in the argument, the "toll system", and basic deposits and withdrawals should not involve fees.

The concept always was this simple.

What is the purpose of a water company? To move water. What is the purpose of the gas company? To move gas. What is the purpose of the electric company? To move electricity. What is the purpose of a bank? To move money. Nothing more.

That means bank executives should be paid equivalent to water, gas, and electric companies. Banks functionally are a utility - nothing more. They do not create innovative products. Do for the economy only what water, gas, and electric companies do.

But bankers claim they make innovation happen. Bull. We all know from the past decade that bankers routinely subvert economies while claiming they make economies prosper. Do they deserve obscene profits and golden parachute salaries? Of course not. But a majority, due to urban myths, misunderstand the real purpose of a bank. It is only a utility; not permission to steal from the economy.

These bank executives are not only stealing from the economy. Some of the least paid workers are their tellers. The average full time salary of a bank teller in NYC is barely above $20,000 annually. A poverty wage especially in Manhattan while top executives reap upwards of $hundreds of millions.

tw, you fundamentally mischaracterize (or misunderstand) the "purpose of a _____ company". It is not to move a product or material, it is to make money, a profit. If moving water or moving money gets gets that done, great; if fees and tolls are helpful toward that end, fine; if imaginary things have to made real (like the need for a V-8 engine or home ownership for anyone) and real things need regarded as imaginary (like the damage caused by toxic waste or toxic mortgages), so be it. Let the profits commence, let them mount unto the sky, and beyond.

Profit, not transportation, is the purpose of a company. Do not lose sight of that.