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Massachusetts Liberal

Observations on politics, the media and life in Massachusetts and beyond from the left side of the road.

Friday, October 23, 2009

Faux fears

Spare me the crocodile tears from those poor business executives who will have to get by on just $10 million a year.

Obama pay czar Kenneth Feinberg's action affect only 175 executives -- 25 people at each of the seven companies bailed out by taxpayers who would be lucky to earn that much in a lifetime or two.

There's an argument to be made that the crackdown is really nothing more than a symbolic sop to Main Street America outraged by the bad behavior on Wall Street that has the unemployment rate around 10 percent.

But sop or significant step, it's insulting and infuriating that these clueless types are complaining that the loss of excessive compensation will result in a "brain drain." Puhleeze, it was those "brains" who created this mess and who have been bailed out with taxpayer dollars.

One (very small step) for Main Street. It's a start and I'm happy to take it. And I would love to see Fed try to expand its oversight on the Masters of Greed.

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Anonymous Anonymous said...

I'm in complete agreement with you about pay: If you ask the government to bailout your company, then they have the right to set your salary. Just like any owner, lender or board of director.

The problem here is that damn few people understand why the economy collapsed last year. Yes, part of it was greed.

The deeper cause, however, was Fannie Mae and Freddie Mac. They gave the banks the ability to sell off their loans -- or liabilities, if you like. And it's very likely the sold their most questionable loans, you know, the ones the government made them make because of regulation.

Those mortgages that were sold to Fannie Mae and Freddie Mac were then turned into mortgage-backed securities. Which then went south because the people who had those loans were getting laid off.

The current economic crisis was brought about our friends in both political parties. If you want to prevent this situation in the future, get rid of Fannie Mae and Freddie Mac and force the banks to own the loans they make. Trust me, they'll be far more conservative in lending a buck.

Meantime, you're right: If you ask the government for a buck, they get to set your pay and maybe even tell you when you can use the potty.

October 23, 2009 8:26 AM  
Anonymous pete said...

Massachusetts Unemployment Level Trends - September 2009

Massachusetts Unemployment Trend Heat Maps:
A map of Massachusetts Unemployment in September 2009 (BLS data)

versus Massachusetts Unemployment Levels 6 months ago

October 25, 2009 11:13 AM  

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