Obama Declares US Wage Controls

[Pa(b)st Prime]

If a trader at BAC receives a million dollar bonus isn't almost half his check going right back to the Treasury?

The debate is just ridiculous populism. The execs who caused the problems are long out the door-with 10's of millions in comp.

Let's say you were born with a silver spoon in your mouth. Friends of your Dad throw you a ton of IB business. Because of those relationships you're a cash cow for your firm. Should your comp be capped? If yes then what will your next action be? Hello Deutsche Bank, eh? Is your exit going to help your present TARP receiving employer? Hardly.

Quote from 4444CJones4444:

Let's compare apples to apples here. If the government gave the NFL $20 billion and guaranteed all its debt, than yes, controlling the top 5 salaries in the company isn't a bad idea. Building a stadium to generate tax income doesn't even apply to this argument.

I have no idea what free FCC air waves are or what you would charge for them if they weren't free (probably not $700 billion), but I do know if you broadcast on them and if your company is creating a giant black hole in the economy, the government would probably take your free air waves away.

Other than companies that manufacture weapons and technology for the Department of Defense, please list the companies that make billions from government contracts. And you really see no difference in producing goods and services for the government and the government printing money and guaranteeing debt so the country doesn't fall into a depression?

 

[Mvic]

Quote from Daal:

I agree completly. If obama plan for exec comp was increasing shareholder power and oversight it could completly consistent with market principles and probably pretty effective. What I dont think this particular move is big deal, they are creating the PRESCEDENT which might lead for them one day to do a sarbanes-oxley and let the government tell private firms how comp should be set, although there are plenty of exceptions US corporate performance(as measured by SP500 earnings) have been pretty good over the last few decades so its not like US corporations are broken in the sense they dont perform or that the money is totally undeserved

True, one of many troubling precedents being set. Looking back, if the Fed had not intervened with LTCM and allowed them to blow up would we be in this mess today? The slippery slope is a dangerous thing. The way I look at it though is that by rewarding those who are incompetent or inefficient the precedent is worse than the subsequent intrusion of government in the free market once tax payer support is needed. Perhaps this comp cap will be a warning to future CEOs of what awaits them if they can not mind their own business.

 

[Hombre]

Quote from Brandonf:

I think that the string attatched ought to be that the idiots who got us onto this ship leave, and we bring in new people who might have a chance to do something.

That said your not going to have much luck finding the most talented new blood if you limit it to $500,000 per year. I'm a community college drop out recovering from cancer who's still fighting anemia and I'm on track to make more then that this year. I might have some good ideas to turn one of the banks around, but you wouldnt get me to take on those kind of hours and that kind of responsibility for 500K, no way in hell.

You are sooo full of it .

 

[Anaconda]

Quote from Daal:

Let me get this straight. So because the government did one socialistic thing, that justifies it to do some more. By this logic, if they in addition to wage controls made it illegal for citizens to hold gold that would be ok, yet I bet you all would be whinning the US has became worst than Cuba. But of course this type of wage control is CONVINIENT for you all thats why you guys have no issue with it

What remedial education system did you go graduate from? Are you still riding short yellow bus?

The government, aka taxpayer is footing the bill from these banks. Since that somehow makes the taxpayers the shareholders (against their will), then they have the right to decide what, if any, compensation limits there are.

Just like shareholders of a corporation do, or at least should do. But then shareholders have an option, they can dump the stock. The taxpayers are stuck with it.

 

[Anaconda]

Quote from Mvic:

1st of all the compensation system is broken and it has just become executives essentially voting themselves whatever compensation they want (they all sit on each other's comp committees etc).

Does not sound broken to me, more like "working as intended".

I feel it's absurd, but I don't own any shares nor do I intend to own a share of any company with absurd executive compesation to those who never put any equity into the firm. I don't like being ripped off.

 

[Mvic]

Quote from Anaconda:

Does not sound broken to me, more like "working as intended".

I feel it's absurd, but I don't own any shares nor do I intend to own a share of any company with absurd executive compesation to those who never put any equity into the firm. I don't like being ripped off.

One man's absurd outcome is another man's broken.

 

[bugscoe]

Apparently, it's clear in the Constitution that the Gov cannot impose restrictions on contracts simply because it loaned out money.

Seems to be the first thing the Gov should have checked. Will be interesting.

 

[swtrader]

Quote from bugscoe:

Apparently, it's clear in the Constitution that the Gov cannot impose restrictions on contracts simply because it loaned out money.

Seems to be the first thing the Gov should have checked. Will be interesting.

if we were living by the constitituion, they NEVER WOULD HAVE GIVEN THEM THE FUCKING MONEY IN THE FIRST PLACE!!!!!!!!

 

[4444CJones4444]

Quote from bugscoe:

Apparently, it's clear in the Constitution that the Gov cannot impose restrictions on contracts simply because it loaned out money.

Seems to be the first thing the Gov should have checked. Will be interesting.

That's a valid point if it's true. Where in the constitution did it say that?

 

[Random.Capital]

Ron Paul is a politician. Like all successful politicians, the first, last and only immutable plank in his ideology is to get re-elected.