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Stop the Government from screwing things up--- again

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October 22, 2009 – Comments (2)

Are there people who received way too much in bonuses/perks... absolutely. However, this is not isolated to the financial industry--- they are just easy targets for politicians who want to label all of Wall Street as greedy snobs for their own political gain. For example, you do not hear complaints about movie stars, athletes, and others who bring in millions and millions of dollars.

The only difference is that the taxpayer had to come in and bail many of these firms out. I completely understand that argument and the outrage over compensation at AIG for example. However, the conclusion that all of Wall Street should be shamed and labeled as greedy snobs who brought about this great financial collapse is wrong. The blame is everywhere--- from many financial institutions for sure (however, not all... so to label Wall Street as a target is not practical). but also the government's lack of oversight, and the individual consumer's greed (buying way too much house than he/she could afford). The blame is everywhere, but what is the solution?

Is it to hammer down on Wall Street with an iron fist from the "pay czar" dictating compensation for hundreds of companies? Is it to extend government even more into the private sector when it cannot even control its own budget? I do not think so. What we need is to focus on solutions. If you want to hammer down on Wall Street executives... of which only a small subset can really be blamed for what happened, then fine. If you want to examine individual compensation packages and highlight the most ridiculous ones to then try and form a generalization for all financial institutions--- be my guest--- but the result will be that these executives leave their firms under restriction pay, go somewhere else to make more money, and then the companies that received bailout money will lose their top talent and fail to repay TARP--- and the taxpayer will pay--- again.

Discipline101

2 Comments – Post Your Own

#1) On October 22, 2009 at 5:06 PM, rosemanjhk (57.02) wrote:

I started to invest (on my own) a little over a year ago.  I actually READ the mailings I get from the companies, and find them VERY interesting!  It is both amazing and shocking what some of the salaries are in industries across the board. 

 What really got to me was board of directors.  Individuals who serve on these usually serve on many.  One publication from a company I bought stock in listed that most of the board served on at least 3, and as many as 5 OTHER boards!  They are basically a "good-old boys" club that appoint one another to serve on each others boards, and collect (usally) at least a quarter of a million dollars (MINIMUM!) to serve as a "rubber-stamp" for the CEO. 

I urge all stock owners to read the sections of the company publications they recieve about executive compensation.  IT is a VERY interesting experience....but take your blood pressure medication before doing so! 

 

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#2) On October 22, 2009 at 5:45 PM, nottheSEC (81.21) wrote:

First as for blame who cares?.The financial firms borrowed money and we the people just want our money. WHY? If you have enough mnoney to pay bonuses you can put a little down on your TARP. Rent comes first than play 

 they are just easy targets for politicians who want to label all of Wall Street as greedy snobs for their own political gain. For example, you do not hear complaints about movie stars, athletes, and others who bring in millions and millions of dollars.

If you build it they will come. If you do not want the government in your face don't borrow from them. On movie stars, etc they earn money that people volunteer them for a service.They do not borrow and later dislike the terms.

 Is it to hammer down on Wall Street with an iron fist from the "pay czar" dictating compensation for hundreds of companies? 

Corporate or individual welfare comes with restrictions.Individuals usally do not complain about the terms

Is it to extend government even more into the private sector when it cannot even control its own budget?

When the loans are repaid the government will have nothing to say.The governement was a "buddy" when it loaned the money now their evil.  

...but the result will be that these executives leave their firms under restriction pay, go somewhere else to make more money, and then the companies that received bailout money will lose their top talent and fail to pay\

Foe every talented person there are 10 people behind him/her willing to take less.

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