The Bankwatch

Tracking the consumer evolution of financial services

Posts Tagged ‘AIG

How much do we understand the meaning of less GDP now and forseeable future

The fall in GDP for Japan appears nothing short of catastrophic, yet on a visit there last week by Nobuyo, the effects of this change are not obvious to the everyday Japanese person.

One change that was noticeable in Tokyo is less foreigners (Gaizin).  The area around Roppongi and Azabajuban is normally where one can expect to see many western faces in the restaurants and bars.  No more.  Companies such as Lehman Brothers, Merrill Lynch, and AIG as well as numerous other western financial services companies had representation in Japan, however that is quickly shifting.

This still does not appear to impact the average Japanese, at least not yet.  In fact as the country ages it almost seems to fit with a reduced economy.

Japan’s economy down 15.2% | Economist

The data, released on Wednesday May 20th, showing a 4% contraction of GDP on a quarterly basis, and a 15.2% annualised slump, reflect a continuation of Japan’s worst economic performance since the mid-1950s. Not only were the first-quarter figures bad. The previous quarter’s horrendous fall was itself revised downward by more than two percentage points, to an annualised 14.4%.

Researched by Nobuyo Henderson

Written by Colin Henderson

May 21, 2009 at 00:00

Dear A.I.G., I Quit! | Jake DeSantis

It is very interesting and illuminating to read this resignation letter from Mr DeSantis of AIG.  He received $742K on march 16th and must either repay to keep and lose 90% to tax.  He intends to keep and donate residual to charity.

Question de jour:  Should Mr DeSantis, who was earning $1 per annum salary, be held responsible for the world economic crisis?  Is he more accountable than Joe Plumber in Florida who signed up for a sub-prime mortgage knowing full well he could not afford the interest reset.

These are difficult and emotional times.  Delivering bailouts without terms and conditions attached bordered on criminal and here is the outcome – a modern day lynching.

Dear A.I.G., I Quit! | Jake DeSantis

As most of us have done nothing wrong, guilt is not a motivation to surrender our earnings. We have worked 12 long months under these contracts and now deserve to be paid as promised. None of us should be cheated of our payments any more than a plumber should be cheated after he has fixed the pipes but a careless electrician causes a fire that burns down the house.

Written by Colin Henderson

March 29, 2009 at 23:31

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