paying-attention

Today's New York Times offers an opinion on executive pay, in an editorial titled "Money Really is Fungible." An excerpt:

Just weeks after the Treasury Department gave nine of the nation’s top banks $125 billion in taxpayer dollars to save them from unprecedented calamity, bank executives are salting money away in billionaire bonus pools to reward themselves for their performance.

Outraged? The bankers (who didn’t anticipate the subprime crisis) were ready for that. So they are assuring everyone that this self-directed largess won’t be paid with the same dollars they got from taxpayers. They’ll use other ones.

What we want to know is will they be marking the bills so they can be sure which is which?

Unfortunately, the legislation that created the $700 billion rescue fund barely touched on the problem of executive compensation — limiting bonuses only when they are found to have been based on inaccurate statements of earnings or when they are deemed to encourage bankers to take “unnecessary and excessive risks.” The new Congress should impose tighter limits on executive pay at banks taking taxpayer money.

So lemme get this straight: It's okay to raid employee pension funds and shareholder dividends to pay off debts and keep the company afloat, but the executive bonus pool is sacrosanct? Get your pitchforks, it's time for an angry mob!

There is a reason that public employees tend to make less than their counterparts in private industry. It is because taxpayers are stingier with a dime than private board members can afford to be. Maybe it hasn't dawned on these people yet that their jobs are currently dependent on public financing.

Merriam-Webster online says that the adjective fungible comes from the New Latin fungibilis, from Latin fungi, to perform. It has the same root as the word function. Their definition: being of such a nature that one part or quantity may be replaced by another equal part or quantity in the satisfaction of an obligation; example "oil, wheat, and lumber are fungible commodities."

Sorry, but I'm not willing for my tax dollar to replace the function of money that was lost in bad business deals.

The whole reason for the ridiculous compensation levels was that the bank officials were willing to personally share the risks that they lead their companies into. If we taxpayers are assuming the risk for their decisions, then the bonus is for...what? Looking good in an expensive suit?

Labels: $700 billion bailout, executive bonuses, The New York Times, US taxpayers

Like so many others I am sick to death of the political thievery underway in D.C. Has anyone thought of bailing out the American People? So many crazy ideas and plots in the capitol, how about another? I'm against the $85 BILLION bailout recently approved for AIG. If it isn't too late, a friend of mine came up with the following solution:

Instead giving it to AIG, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It" dividend.

To make the math simple, let's assume there are 200,000,000 bona fide U.S. citizens, aged 18+. Our population is about 301 million counting every man, woman and child. so, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion - that equals $425,000.00 each!

Yes, my plan is to give that $425,000 to every adult as a "We Deserve It" dividend.

Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595 ,000.00!

What would you do with $297,500.00 to $595,000.00?

· Pay off your mortgage - housing crisis solved
· Repay college loans - what a great boost to new grads
· Put away money for college - it'll really be there
· Save in a bank - create money to loan to entrepreneurs
· Buy a new car - create jobs
· Invest in the market - capital drives growth
· Pay for your parent's medical insurance - health care improves
· Enable Deadbeat Parents to come clean - or else

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back) and of course, for those serving in our Armed Forces. If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!!

As for AIG - liquidate it.

· Sell off its parts.
· Let American General go back to being American General.
· Sell off the real estate.
· Let the private sector bargain hunters cut it up and clean it up.

We deserve the money and AIG doesn't. Sure it's a crazy idea, but can you imagine the coast-to-coast block party?!

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t D-i-v-i-d-e-n-d!

I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It" dividend more than I do the geniuses at AIG or in Washington, D.C.. And remember, The plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam.

Any nuttier than the ones presently being seriously considered?

--commishiv250
9/27/2008 11:57:00 AM

Labels: $700 billion bailout, AIG, US taxpayers