What Recession?


Goldman Sachs has recovered quite nicely from the recession they helped create. They’ve paid back the bailout money already, and freed from the strings that came with it, they’re rewarding themselves for their business prowess with executive compensation above pre-crash levels. How did they do it? By being smarter than the other banks. Oh, it’s not that they didn’t play the same risky game with mortgage-backed securities and derivatives; they just saw the disaster coming before everyone else did and passed off their toxic assets to less prescient investors. To the victor the spoils. What’s especially troubling about all this is that neither they nor the government seems to have learned anything. So far the Wall Streeters in the Obama administration have shown little interest in actually fixing the system. The heart of the problem is precisely the executive compensation Sachs is lavishing upon itself. Without strict limits on how much these robber barons can help themselves to, the temptation to rig the game once more will be too great, and another economic meltdown is inevitable.

6 thoughts on “What Recession?”

  1. I totally agree. In fact it is such a good idea for the Federal Government to set limits on salaries – why won’t we do it for everyone in America? That way nobody will make more than their fair share.

  2. I’m not for government control on compensation even when government loans/guarantees are provided. However, if “we” take an ownership position, “we” should have a say-so proportional to the ownership position just like any other shareholder.

    The thing that is really aggravating is that corporate boards do not take seriously their fiduciary responsibilities to the shareholders (aka owners). While lots of us have a stake in US companies, it is primarily through mutual funds and they too do not look out for their sharholders and generally go along with whatever compensation plan put forward by the Board. There’s is where we need to see some changes.

  3. Two comments I would like to make on this one if I may. 1. The compensation for the exe/s is out of hand because the boards are not common stock holders anymore. Thanks to mutual funs and retirement plans handeled by the same crooks that pick the board members that pick the chief officers of the companies. They use the little guys money to make themselves very rich, thank you very much. 2. When the country ie. congress lowered the exessive top tax it started this greed at the top. Raise the tax on those making over a million dollars to 60% and over 10 million to 80 % and it will bring reality back to the business world. That way they either invest and rebuild or pay it to the general fund. Investment brings jobs. It is all about GREED folks a basic human factor and it is set free right now.

  4. and stop outsourcing. tax the company. limit the greed. if they cannot live on 1 or 2 millions per annum, tough nougies (how to spell that word?). But then again, they are sociopaths and incapable of compassion and fessing up to their incessant major screwups.

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