Tuesday, October 4, 2011

A Sustainable Financial System and a Sustainable future Thoughts by The Sustainable Finance Lab (26)

If you want to know more about the SYSTEMCRISIS in the Financial World read this!
Great food for thought from the most experienced sustainability and Banking Experts!
Yesterday the Sustainable Finance Lab in Holland met for the first time to a big discussion night about the future of the financial world and system...and the future role as serving the society and adding value to the society and not just to the shareholders! Banks should be forced to deliver a added value to the society!
Prof Herman Wijffels  a former board member of Rabobank, SER and the World Bank, now professor sustainability and social development at the University of Utrecht and one of the people behind the Sustainable Finance Lab Utrecht .

The most interesting statements from this evening..the image of Bankers has changed Bankers used to be honorable people until a few decades ago..now many people see bankers as parasites of the society! Sucking up the Taxpayers Blood to compensate for speculation experiments that went wrong! Think about the housing bubble the debt bubble!
We must focus on the development of a sustainable system!
Right now a combination of Greed, Hyperspeed Trading and IT is killing the system!
No one seems to trust the financial sector anymore! Safer Banking is not being rewarded!!

Banks are not like normal companies but they behave like normal companies and are trying to reach high returns on investments that are impossible in the real economy! Trying to earn 25% is simply way too much 7-12 % like in the real economy should be the range!

The Crisis has in no way been solved and still continues! We are approaching the REAL CRISIS!  2008 was just the start!

A study in the USA shows that between 1920 and 1980 the relation between the average pay in the banking sector and the rest of the Economy was 1 : 1 that relationship changed since 1980 to now 3,4 : 1 ! Food for thought! And a reason for the ANGER!

But its not just the Banks that found out that they could earn unlimitted amounts of money out of hot air, Corporations also started BANKING and the biggest Cash Cow for GE is not the production its the financing that is number One at GE!

We don't have a debt crisis or a banking crisis we have a SYSTEM CRISIS! A realy Big System crisis and the experts agreen that it will take up to 30 years to solve this crisis and build a sustainable financial system! 30 YEARS! But do we have that much time?

The Bonus Systems of Bankers did not Change since 2008 the levels have been reduced but the direction is still the same!
And as we have seen the last two years its still about short term speculation instead of long term risk management!

In 1995 scientists predicted the problems in the financial world that came up in 2007! But the people responsible in the Governments made a short remark: NOT CONVINCED! Can you imagane that? Scientists researched the system and wrote all the risks and the Changes that should be made to eliminate the risks...

Banking is too important to leave it up to the Bankers! We need much stronger rules!

What is the Task of the financial system?!
No POLITICIANS ever ASKED this Question! Why not? Is the financial world too much involved in Politics?

Shareholder Value is a BIG PROBLEM! Banks that are owned by the Customers never had the same problems!
We need a less RISKY Sector and should stop FEEDING the HEDGE FUNDS with Speculation MONEY!

We need more RULES to Reduce the RISKS!
What TYPES of BANKS do we want? Do we want investmentbanking the way we have it now? CASINO BANKING?

Back to Basics is what is needed to solve the crisis! Capital has to be earned! Recapitalising takes time! Banks need more Capital thats for sure! Change is speeding up and Money will be more expensive in future! Because of the higher capital needed!

If the Financial System Fails there is no kind of BACKUP! The Real Economy and the Financial system should RECONNECT!!!

The BEAST is out right now and nobody can tell what will happen! NOBODY not in the USA not in EUROPE not in CHINA!
What will happen is unknown and the Financial Sector does not have the Software for this kind of RISK MANAGEMENT....

The problem of the BIG BUBBLE in the financial system will have to be solved!
Just like the Bubbles before this bubble will burst sooner or later!

But the Question is? Is it just the System? Can the System Survive? How?
Its not just the System also the individuals in the System that need courses in Business Ethics!

A study in Switzerland by the University of St. Gallen has shown that Hedgefund managers are more reckless than the worst Criminal Minds!

So why does nobody trust the financial sector anymore? BECAUSE TRUST IS EARNED! And only a few Bankers realy earn this TRUST!
One Interesting suggestion was being made that maybe we need slow finance like we need slow food...

But the Experts agree that its important to be able to speculate with all the possible IT help and SPEED! In nanoseconds not in weeks!

What do you think will a Combination of GREED, Speed and information Technology kill the system?

The DEBT GAME CONTINUES! Greece will not be able to pay for the Debts it has now! But all that we see is more new DEBTS! And Bailouts for the Banks not for the people and the REAL ECONOMY!

We need Sustainable Banking to build a sustainable future!
Only 1% of all the investments is realy Impact investment!
10% of the worlds investment are "TBLI"but the tripple bottom line sometimes just means that they don't invest in PORN or Weapons or Child labour! Until we see more banks like the TRIODOS Bank in Holland one of the most sustainable banks in the world that put Sustainability FIRST the Systemcrisis will continue! We need a fundamental SHIFT!

Triodos Bank is one of the world's leading sustainable banks. Our mission is to make money work for positive social, environmental and cultural change. All the Banks in the World should follow that RULE Serving the Society to build a sustainable future!

How will taxing the financial world either Banks or Transactions help solve the Crisis?  The Real economy is fine its the SYSTEM thats in CRISIS!

More information about the sustainable finance lab just in Dutch please use Google to Translate
This is the direct link to the discussion
You will see much more CHANGE in the next few months! Occupy Together will be a GAMECHANGER! “The key to change... is to let go of fear.” And thats exaclty what is happening in New York and the rest of the world PEOPLE let go of FEAR! Because they are SICK and Tired of the CRISIS that has been Caused by GREEDY Bankers and a Financial System that seems to be competely out of Control! The Real Economy and the PEOPLE don't have the time to wait for CHANGE for 30 YEARS! We need CHANGE and we need it now! To build a sustainable future! Lets build a sustainable global society founded on respect for nature, universal human rights, economic justice, and a culture of peace. http://www.occupytogether.org/

1 comment:

  1. Future of sustainable banking must be supported by an education for sustainability and therefore complete human development.