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A rather standard argument from you guys - but fails, in my opinion, when one considers that these institutions almost crashed the system. Conan didn't start the mess over at NBC - he's just been displaced.

There has long been outrage for CEOs making ridiculous money while taking down companies (hello, Home Depot?), much of it actually from those on Wall Street.

Now that the Wall Street crowd managed on almost blowing up the world (might still happen), they suddenly forget this and argue that they should get their bonuses. Where to begin with this sort of thinking. Imagine what a Wall Street analyst would say about paying out huge bonuses to a particular division of a company while the rest of the company went up in flame. They would call for their heads.

As far as GS employees getting their bonus in stock, I have less of an issue with that because it somewhat aligns them away from short term thinking (still has flaws).

What people are outraged about (at least the smart ones) is that GS was paid 100% on their AIG counterparty risk - and have made huge profits as a result of that direct cash in the door, and as a result of being given free money at various Fed windows to make a huge amount of dough. All backstopped by the US taxpayer. GS would be a pile of rumble without the US taxpayer, and yet they cry about even the possibility of their bonus being taken away and claim they'll walk away. Let them - there are plenty of people that would take their place.

There is naturally equal outrage at the US government which has enabled all of this. Timmy should be shown the door....

Rational Market

So, does this mean Obama is still tougher on terrorists than bankers as you highlighted this past Friday? Or, is that thesis no longer operative due to these positive unintended consequences? Maybe Obama is still weak on both terrorists and bankers? And, maybe that is the reason the reason the market rallied today?

Rational Market

Whoops - I got bankers and terrorists mixed up. Of course, Obama is tougher on bankers. But, maybe these positive unintended consquences make him weak on both terrorists and bankers again?


I am fine with obscene payments to bankers, as long as they are in stock and they go into effect >= 1 year. Lets face it, this industry has gone into crazy boom and bust mode. Get your money now before your company blows up.

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