Bankers’ bonuses

This is a little off the topic of this blog, but worth a comment.

An awful lot is being said right now about bankers’ bonuses and how iniquitous they are. I’m sure the bankers are laughing into their drinks on this, because concentrating on the bonuses misses the point. How was the money earned to pay the bonuses? Was anything added to the sum of the national income by the bankers’ activities, or are the “profits” of the banks merely balanced out by the losses suffered elsewhere by you, me, the pension funds and whoever?

There is absolutely no clarity on this. A few relevant facts would help the debate along a lot.