The bonus culture

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According to the FT:

Mervyn King launched an unusually fierce attack on the bonuses paid to City bankers on Tuesday and vowed to use his second term as governor of the Bank of England to curb the excesses he said had helped provoke the credit crisis.

As he put it:

I do think it is rather unattractive that so many young people, when contemplating careers, look at the compensation packages available in the City and think that these dominate almost any other type of career.

It's not a very attractive situation that such a high proportion of our talented young people naturally look at the City and think it is the only place to work in. It shouldn't be. It should be one of the places, but not the only one.

He's right, of course. But there's one problem. Why couldn't he see this before the credit crunch? Some of us could. If he couldn't see that problem before it happened, what else is he missing? Is the offshore issue, for example, another one that is passing him by?