Obama wants a salary cap

[Capt Worley PE]

Well, Obama wants firms recieving bailout money to cap executive salary.

http://www.cbsnews.com/stories/2009/02/04/...in4774418.shtml

I know what he's trying to do, but I don't think it'll work. One of three things will happen.

1) They'll find a way around it.

2) Executives will bail out and get jobs elsewhere, no one will want the position left open because they are underpaid

3) Companies driven into the ground by execs who don't want to lose their pay.

I'm OK with 3, since that is what should have been allowed to happen in the first place.

 

[Vishal]

I don't quiet agree with #2. Where exactly are they going to find a 'better paying' job?

 

[Flyer_PE]

^ At a company that is not a recipient of bailout money.

In a way, I think these companies deserve what they get. It's what happens when you make a deal with the devil. When you accept government money, you have just opened up the door to government intervention in your business.

Congress will start designing cars next.

 

[Dexman1349]

In order for these salaray caps to go into effect, the companies may have to void the terms of the exec's contracts. Most top execs have their salaries and bonuses (including severance packages) written into the contract.

I know Bob Niridelli (Sp?) has successfully run 3 companies into the ground (GE, Home Depot, & Chrysler) and received multi-million dollar bonuses / buy-outs of his contract at Home Depot and GE when he was asked to resign because it was in his contract.

 

[MGX]

I find the flip side interesting as well.

Investment bankers are resentful that so many Americans bought into easy and stupid debt like adjustable rate mortgages mandated by the government for low income people (thanks Bill Clinton and Jimmy Carter!). Some say they just packaged the poo they received and marketed the junk like any good scrap dealer.

Sure, some manipulation of scores and misrepresentation of said junk did happen, but with so many dollars flying by, you'd be a fool to not grab some they'd argue.

Now the house of cards has fallen and bankers blame the American mortgage owners, the mortgage holders blame the bankers and government and the government blames the banks for what the government mandated them to do.

On one hand, I'm pissed the banks would loan money to people who couldn't repay, but the government had a part to play also by mandating those bad loans since the belief home ownership will cure poverty has come into fashion. On the other, I'm pissed I'm bailing out some asshole who makes 500K/year, knuckleheads who made that money doing stupid deals.

Personally, I think if you accept government money you ought to jump through many, many hoops and have it be a serious PITA and crippling. It should be awful to discourage others from the moral hazard associated.

 

[Chucktown PE]

A lot of you are forgetting that Hank Paulson sat down with the six biggest banks in the country in October and essentially told them that they weren't leaving the room unless they accepted TARP money. They were FORCED to take bail out money.

Why you ask. Because if some banks did take money, and others didn't, it would be obvious which ones were insolvent therby resulting in the complete devaluation of their common stock. What this has done is in effect turn the banks into zombies. Now all of their stock prices suck. I own BofA stock and have watched it go from $50 per share to $5 per share. The bulk of that happened after that fuckhead Hank Paulson made them take TARP money or as he called it, capital infusions in turn for government warrants.

You should seriously consider writing your elected represenatives about this. The bank system in this country is being nationalized as we speak. And keep in mind that what caused ALL OF THIS to begin with was government interference in the banking system through Fannie, Freddie, and Indy. Look at how good they ran those companies.

 

[Capt Worley PE]

You should seriously consider writing your elected represenatives about this.

Oh, i did. i got nice little letters back explaining why it was a difficult decision, but had to be done. They don't care. they really don't.

Sometimes I don't think we're too far away from pitchforks and torches.

 

[roadwreck]

I don't think we're too far away from pitchforks and torches.

NOW THAT'S SOMETHING I CAN GET ON BOARD WITH!!!!

 

[Chucktown PE]

Oh, i did. i got nice little letters back explaining why it was a difficult decision, but had to be done. They don't care. they really don't.
Sometimes I don't think we're too far away from pitchforks and torches.

Capt, I'd be willing to storm Lindsey Graham's office with you if you want. Let me know when is good for you. It'll take me about two hours to pack the car and be in Cola. I have an extra pitch fork if you need one.

 

[MGX]

Sometimes I don't think we're too far away from pitchforks and torches.

That's change I can believe in!

I was thinking the other day that, in the course of history, the majority of political change has been brought to pass by clubs, pitchforks, guns, tanks etc...

 

[chaosiscash]

Capt, I'd be willing to storm Lindsey Graham's office with you if you want. Let me know when is good for you. It'll take me about two hours to pack the car and be in Cola. I have an extra pitch fork if you need one.

Pitchforks in Columbia? Reminds me of Ben Tillman and the "chicken curse".

 

[Capt Worley PE]

^I think Spurrier's starting to believe in that!