I loved this letter to the editor in today’s Australian Financial Review (I would link to the AFR website but the content is only available to subscribers).
The letter was submitted by David Beattie of Mont Albert, Victoria:
A great little club
As a small investor, I’d like to wish all the Australian finance insiders – the fund managers, executives, merchant bankers and lawyers – a great year. Although I could never aspire to your earnings, it’s great that my investment funds let me assist your wealth by voting for ever rising executive pay and allowing more and more bonuses and payments to high-priced bankers and lawyers. That fact that you guys are all friends – and therefore know how to reward each other with my money – makes it even better.
Surely, the sub-prime mortgage crisis and the subsequent credit exposure for the banks is a result of the cosy relationships that exist in the finance sector – a small community of wealthy people lining their pockets at the expense of the common man.
Unlike Enron, this fraudulent activity is endemic to an entire industry, which makes it hard to point the finger and provides Government with no option but to bail the banks out with our money!
Just heard that the Australian stock exchange lost $30bn today amid fears about a US recession.