Wage increases should be based on the increase of productivity
A warm breeze blows through Germany economy. The economy is not as long but you have to keep in mind that in 2010 we have only once managed. The dramatic collapse of 2009 somewhat compensate. In this respect, we are just back to normal position. Wage increases should be based on the increase of productivity and the rate of inflation. It signals us for the current year distribution margin in the industry, which should be around 3%.
Only if you follow these guidelines, it will be able to create more jobs. It is hardly possible to reduce unemployment to long term. Staying below, we can break the mark of 3 million unemployed people down and have given the demographics and the current good economic situation in the next two years it is a good chance to reach the two million mark. The wind blows so now need the sails are set correctly.
Nationalizationisnot a business model
Over the next three months, Commerzbank wants to pay back 14 billion received during the financial crisis, state aid. In addition, as a small thank the taxpayer about a billion on top. We must not forget that the rescue of Commerzbank was connected to the taxpayer with substantial risks. What would have happened if the bank had not turned the corner? Whether the repayments now represent reasonable compensation for the ex-ante risk exposure is more than questionable. In addition, the federal government is involved remains to 25% at the institution. No one knows at what price it will be able to sell this stake.
The Commerzbank had to be bailed out with taxpayers’ money. The rescue of Hypo Real Estate and the Landesbanken devour billions. The crisis has shown that especially banks with state participation, the greatest risks are addressed and have posted the biggest losses. We estimate that about 80 percent of the cost crisis are caused to the taxpayer by banks, where the state has deeply involved even before the crisis.
The state is not the better banker. Even if the rescue in the case of Commerzbank at the end for the federal government should not bring profit. Government bailouts are not a profitable business model. For the next crisis, we must be prepared, therefore, better. The state needs to be better prepared, but the banks! On the other hand, do you really want to understand the “rescue receive State” as a fundamental principle of the banking industry in the future, so to speak, as a universal insurance? A bailout will ultimately not be a business model that returns but prevent chaos.