Let Them Eat PSI

Posted by on Feb 9, 2012 in Uncategorized | No Comments

Who hasn’t wondered how the French aristocracy could be so blind the to plight of the poor.  How could they be surprised.  It seems mind-boggling and the “Let them eat cake” line seems to capture it so well.

As I was going a search on Bloomberg, 2 headlines came up that just give me such a weird feeling.  The one story is about the plight of DB’s bankers who will see the cash component of their bonuses capped at $225,000.  Just the cash component, and just of the bonus.  Greece is about to drop minimum wage from €750 to €600 a month.  That is the problem with Greece?  Cutting the minimum wage just seems to add insult to injury.  How can anyone survive well on that?  Sure it might be higher than ours (depending on how many hours are worked), but I really don’t see how this help.

The Troika report that I have seen circulated, makes a big deal about Greece’s effort to reduce “per unit labor costs”.  I guess that is the correct economic term, but it seems as much an attempt to dehumanize the situation.  Supposedly the entire €130 billion bailout (or whatever number is currently being used) was in jeopardy over €300 million in pension cuts.  Again seems mind-boggling.

Does anyone have a guess what the costs of all the EU leader and finance minister summits were?  I’m guessing the catered food per day for each leader is close to the €600 monthly minimum wage.  Hotels, entourage, flights, etc.  Maybe I’m being too cynical, but maybe while Barroso and Venizelos clink champagne glasses tonight in luxury while celebrating their “decisive moment victory” they would do well to remember Marie Antoinette.

On the bright side, jobless claims dropped again, and even after they are revised upwards next week probably still beat the expectations.