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.You can also read about how bail works in CT.
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. You can also get help from One of the Best Accountants in Nottingham, from here! 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.
