According to the BBC, 68% of Swiss voters have backed a “fat cat” referendum to impose strict controls on CEO pay. The new law gives shareholders a veto on CEO compensation and bans “golden handshakes,” i.e. big payouts for new and departing managers.
DW reports the success of the Swiss initiative is leading German political leaders to consider similar legislation. Surprisingly, support for a law allowing German shareholders to control CEO pay has broad support across the political spectrum. It enjoys equal support from the pro-business Liberal Free Democrats (FDP), Angela Merkel’s Christian Democratic Union, the opposition Social Democratic Party and even the Greens.
Given that eleven EU countries have also enacted a financial transaction tax on banks, it appears that Europe, at least, is going through the motions of trying to save the global capitalist economic system.
The US political elites, in contrast, seem to be making all the right moves to collapse the US economy and create anarchy in the streets.
The million (trillion?) dollar question is whether Europe, with the support of Russia, China and the other emerging economies, can save the global economic system, civilization and the human species on their own – despite the Neanderthal wrong headedness of the world’s largest economy.
I assume bookmakers are already taking bets on the exact month the US economy will collapse. Swiss fund manager Marc Faber is offering 100% odds it will happen before the end of 2013: