Of course the collapse of banks would also have a big knock on to other industries as well. And are you saying a job in banking is no less worth saving then one in the car industry?
There are differences in the bailout. Firstly in the car industry the US Treasury is simply handing over money to the companies, in terms of he banks they are actually buying the assets that the bank own (so the banks no longer own them, but the government does... in the car industry the equivalent would be the government buying the cars).
I was under the staffing costs in the US car industry was huge both (there medical insurance division are the biggest parts of the company, I do not know how true this is though). I am also guessing the bailout is an open ended commitment, but to help the firm to get their act in gear, which means getting their costs down and producing cars that people want to buy. Of course they cannot dictate the price of raw material for the cars so it really is only labour costs they can effect.
As for costs banks do tend to pay their workers as little as they can get away with and the industry has shown it is prepared to drive down it labours costs without being told to.
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timeasmymeasure
no subject
Date: 2008-12-21 05:45 pm (UTC)There are differences in the bailout. Firstly in the car industry the US Treasury is simply handing over money to the companies, in terms of he banks they are actually buying the assets that the bank own (so the banks no longer own them, but the government does... in the car industry the equivalent would be the government buying the cars).
I was under the staffing costs in the US car industry was huge both (there medical insurance division are the biggest parts of the company, I do not know how true this is though). I am also guessing the bailout is an open ended commitment, but to help the firm to get their act in gear, which means getting their costs down and producing cars that people want to buy. Of course they cannot dictate the price of raw material for the cars so it really is only labour costs they can effect.
As for costs banks do tend to pay their workers as little as they can get away with and the industry has shown it is prepared to drive down it labours costs without being told to.