Posts Tagged ‘bonus’

entrepreneurs or leeches

October 24, 2010

 

David Cameron’s declaration that the next ten years will be the age of the entrepreneur and will see a huge change in the nation’s fortunes is a frightening echo of a similar statement by Margaret Thatcher (presently in the process of beatification, apparently).
I presume this is in response to an article about Hargreaves-Lansdowne (http://www.thisislondon.co.uk/standard-business/article-23846146-margeret-thatcher-was-best-for-business-says-hargreaves.do), which claimed that Margaret Thatcher was the best thing to happen to entrepreneurs.
What the boss of Hargreaves-Lansdowne, referred to was the process of replacing our reliance on an industrial base in favour of a reliance on what was referred to as our invisible exports sector.
“Please Mr. Cameron, do not go further down this road”. 
Within a year of that declaration a national debt zoomed as Insurance companies tried to recover from taking bad risks in America’s Hurricane hit regions. Many LLoyd’s names went bankrupt and domestic insurance rates started their persistent upward trend.
This was a portent of what was to come in terms of further bonus driven mismanagement of institutional funds, where City Traders gambled with other people’s money. This was the road that led to sub-prime mortgages and the present sorry state that we are in.
Of course Hargreaves-Lansdown would like David Cameron to emulate Maggie’s endorsement of the entrepreneur culture, they are part of it. (http://www.ftadviser.com/FTAdviser/Pensions/News/article/20091118/8ea36dca-d44f-11de-8eea-00144f2af8e8/Shareholder-group-slams-Hargreaves-Lansdowns-excessive-bonus-plans.jsp).
Stockbrokers and bankers will be snuffling up their bonuses and the Government will be printing P45’s, faster than the £50 notes that will be used to light the cigars of these entrepreneurs.