Caps on Executive Pay, Kinda Sorta
When I saw the headline that under new rules firms getting taxpayer money through the TARP would have to have limits set on executive pay I was pretty excited. I should not get excited when money, the Banks and Congress get together as there is no meat to these stupid restrictions at all. NONE. I am not going to waste your time and mine recounting the retarded structure of the pay caps, there are many places you can read the hilarity.
The caps are set under vague notions that make no sense and have no verifiable qualifications. As a shareholder in a company that gets TARP funds, you get to vote on a NON-BINDING resolution regarding top exec pay! Whoopee! What a deal!
As if to placate the scared masses on Wall Street, check this passage out from the Yahoo article chronicling the baloney rules:
The limit would apply to top-paid executives at the most distressed financial institutions that are negotiating bailout agreements with the federal government. It also would apply to other banks that receive aid, but they could get around the limits by publicizing to shareholders plans to exceed the salary cap.Sorry Mr. Obama, just because you think some crappy symbolic gesture gets the job done does not make it so. There are now too many sharp bloggers that will fully expose the crazy pay the bankers are still going to collect. Try again.
The limits would not apply retroactively to any bank that received money from the first half of the $700 bailout allocated by Congress. For example, the restriction would not apply to such firms as American International Group Inc., Bank of America Corp., and Citigroup Inc., that already have received such help.
But Obama touted the broad symbolism of his action.
Just Say What You Mean
I get a bit frustrated reading all kinds of quotes where people say something that just makes no sense, or say something that is pure bullsh#t. I think there should be a moratorium on veiled words and falsehoods. Consider the following takes on various quotes over the past few months or so, that I will attribute to nobody specific as many people say the same thing.
"We need home prices to recover."
Just what does this mean? Do we need home prices to recover their "values" at the height of the housing bubble? If so, say so. Say something like "We need home prices to recover to the values when people where buying a condo in Miami that had not even been built and selling it 4 hours later for a 30% gain." Or say something like "We need housing to permanently eat up 60-70% of an average family's income again." Just be honest.
"For the economy to recover, we need the banks to start lending again"
OK. The banks are lending now. I got a great loan on my new Infiniti G35X just last July. With my 829 credit score, a trade in that was worth something, and a down payment of 20% they were falling all over themselves to give me a loan. If you have a credit score over 720 and 10% down you too can get a home loan right now at all time low rates. So what does this really mean? Why not say something like "the banks need to lend more money than they have to people that can never pay it back so we can have another debt illusion economic boom." Try that one out.
"The Government needs to stop asset price declines"
This line is favored by the worst of the Keynesian clowns, the banks, and the corrupt fools at PIMCO. Why not phrase it this way "The taxpayer has to buy all the assets that we all were so wrong about to prevent us from our own ruin." Or even "Inflated prices that rob you of economic freedom is really in your best interest, I have graphs that bear this out." That will work.
"We have to act immediately"
I love this one. just like the used car salesman or the plasma TV pusher they make you feel like you need to make the decision ASAP. This pressuring technique is common to any enterprise where any clear thought on the event will make you see that it is not a good idea. Why not just say "We did all the thinking, so just trust us." Or "We must do this immediately or you may figure out a more sensible solution that does not put the money where we need it to go." That is much closer to the heart of it.
There are many others. I encourage all readers to put in your selection with translations and I will post a compilation in the next blog or so. Be original and most of all sarcastic! It is just one more free service we offer.
Days like today when all the fake talk and real monster money sums are at play one wants to make one of those "Snuggie" robes I see on TV out of gold or silver and wrap yourself in it and relax.
Have a good night.