tag:blogger.com,1999:blog-7660844861872909261.post805675278802941607..comments2023-03-28T18:30:05.613-04:00Comments on Reaction Wheel: Cap 'em AllJerry Neumannhttp://www.blogger.com/profile/11869373074132369401noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7660844861872909261.post-30804157706797086762009-02-06T01:01:00.000-05:002009-02-06T01:01:00.000-05:00Jerry, not only is the pay cap not going to work, ...Jerry, not only is the pay cap not going to work, it's going to make things worse. In fact it's irrelevant, because the magnitude of pretty much everything else that Obama, Geithner and Pelosi are going to do is going to make things worse. <BR/><BR/>ACT NOW! Don't THINK! Borrow a ton more money and bailout a ton more things. <BR/><BR/>And borrow some more and funnel it to expanded entitlements. Just reward all the bad behavior that got us here. And do it with your present and future dollars.<BR/><BR/>Bottom line is we are going to become Europe (without the quaintness). Which will suck.John Khttps://www.blogger.com/profile/14471505239458914968noreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-22993453631866034172009-02-05T08:34:00.000-05:002009-02-05T08:34:00.000-05:00I'm serious. I think this concept should extend t...I'm serious. I think this concept should extend to everyone who receives specific government attention (ie. not people who are protected by the police, for instance, because that's supposed to be everyone.) I've been on one side or the other of many a corporate loan document and they are always about 20 times thicker than equity documents. They contain pages and pages of provisions to make sure the money lent is kept "in the box": not paid out to execs or equity holders. And these loans were to people I knew and trusted, not a bunch of bank presidents who were well-known greedheads. There's just a fundamental agency problem when lending money or putting equity into a company run by people who aren't major shareholders. That they avoided this issue when initially distributing the TARP monies would shock me if I had the slightest shred of faith in the wisdom or morality of politicians.<BR/><BR/>That said, it always confuses me when people complain about the money that businesspeople make (especially the ones who run productive businesses employing thousands of people) but seem pretty much okay with the amounts that entertainers and artists make. I think there's clearly no link between the pay and the social utility of the latter, while there probably is some weak link in the former group.<BR/><BR/>But, really, I think the pay cap is not going to work at all. I can sit here and think of a thousand ways to get around it, so I view it as more bread and circuses for the masses: a pandering program with no real substance that has distracted us from making real change. The 'say on pay' provisions will provide far more substantial change, if they are actually implemented and kept--which I have to admit I find exceedingly doubtful.Jerry Neumannhttps://www.blogger.com/profile/11869373074132369401noreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-63393165207262763402009-02-05T02:48:00.000-05:002009-02-05T02:48:00.000-05:00Hard to tell how serious or sarcastic you are tryi...Hard to tell how serious or sarcastic you are trying to be here.<BR/><BR/>But don't forget NPR, and the athletic programs at all colleges.<BR/><BR/>Of course, the president and Senators easily rack up annual compensation far above their cash payouts too. They should be scaled down as well.John Khttps://www.blogger.com/profile/14471505239458914968noreply@blogger.com