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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

GOVERNMENT GOOD. CAPITALISM BAD

By
Neal Boortz
@ January 30, 2009 8:33 AM
Permalink | Comments (63) | TrackBacks (1)

This is so rich. I mean the cajones on President Obama .. a day after the House passes his $825 billion spending package, Barack Obama actually stood there in the White House and complained about Wall Street bonuses and the need for responsibility.

He said that Wall Street employees getting paid more than $18 billion in bonuses last year is "the height of irresponsibility." He called it "shameful." Did you get that, folks? Shameful. "And part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint, and show some discipline, and show some sense of responsibility."

Restraint? Discipline? Responsibility?

And then we get this. This is the Barack Obama I have been afraid of. Obama went on to say, "There will be time for them to make profits, and there will be time for them to get bonuses ... Now is not that time." Yup ... there you go. The new President of the United States - the president who wrote of his affinity for Marxist professors and student groups while he was in college - the president who thinks that America's greatness comes from its government - this president is now telling the captains of industry when they can and cannot make a profit; when they can and cannot earn bonuses.

OK .. it is easy to gin up some anger toward an executive who takes a bonus while his company is getting bailout money from future generations of taxpayers. But I would like for you to consider just a few things.

First: Please remember that some of these Wall Street companies, specifically banks, made it clear that they didn't want any government bailout money. The Bush Administration told them that what they did and did not want didn't really matter all that much, they were going to take the bonuses, and they were going to sign over part ownership of their companies to the government whether they liked it or not.

Second: What are the details of these bonuses? Almost certainly they are being paid according to a contract. What are the terms of that contract? Let me suggest a scenario. Let's say that the AAA Investment Bank is in trouble. It looks like they're going to lose about $5 billion dollars because of past mismanagement. They go on a search for a new CEO who can turn things around. One of the candidates tells the search committee that there is no way he can prevent a loss .. but he might be able to limit that loss to $1 billion instead of the projected $5 billion. An agreement is reached that the new CEO will get a new bonus at the end of the year equal to ¾% of the difference between the projected loss and the actual loss. The CEO makes changes and takes actions that save the company, and the shareholders, $4 billion dollars. He gets his ¾% .. about $30 million. Tell me .. has he earned it?

But then comes the anti-capitalist president telling the nation how "shameful" it is that you've taken that bonus. Can we really judge whether or not those bonuses were shameful until we know the parameters upon which those bonuses were paid? Only if you're an anti-capitalist leftist with a love of government that surpasses any appreciation for the wonders of the free market.

Another question: Has anyone out there heard Obama say one thing about any of the many shameful shenanigans going on in government .. unless his comment was in the context of slamming George Bush? How about passing those tens of millions of dollars to buy condoms to the people as "stimulus?" That wasn't shameful? How about $50 million in welfare for artists who don't have the artistic skill to produce something that will sell in the private marketplace? That isn't shameful?

A window has opened. We have now seen Barack Obama's animosity toward capitalism out there in the open. More is certain to come.



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What others are saying

  • 18 Billion in Earmarks
    During the debate with John McCain, he said 18 Billion in earmarks were nothing to worry about or something similar. Now it's a big deal. He's, well . . . he's our president. But he's operating on a logic that has so little to do with reality and everyday American problems. He's coming from a worldview that simply foreign to most of us. I'm not as old as him, perhaps as smart, but I could have an IQ score 30 points lower but if I maintained my worldview, I would still be more capable of leading the nation through a tough reality than through his bunny and sunshine commune reality.
  • bonuses
    I guess a multi-million dollar bonus given to an athelete is not considered excessive. Some of these bonuses are given to a draftee before playing any profressional sport.
  • Doctors Vs. Gun Owners
    A.The number of physicians in the U.S. is 700,000 B. Accidental deaths caused by Physians per year is 120,000. C. Accidental deaths per Physician is 0.171. Statistics courtesy of U.S. Dept of Health and Human Services. Now think about this. A. The number of gun owners in the U.S. is 80,000,000. Yes, that's 80 Million B. The number of accidental deaths per year, all age groups is 1,500. C The number of accidental deaths per gun owner is .0001888. Statistics courtesy of F.B.I. So, statiscally, doctors are approximately 9.000 times more dangerous than gun owners. Almost everyone has at least one doctor. Please alert your friends to this alarming threat. We must ban doctors before this gets completely out of hand!!!!!!! Out of concern for the public at large I withheld the statistics on LAWYERS. for fear the shock would cause people to panic and seek medical attention!
  • Doctors vs. Gun Owners
    After receivin this I immediately thought of Neal. I know he gets many comments. I know he wil enjoy this one
  • Government Good. Capitalism Bad.
    Managers as a group are not capitalists. Starting a business and managing a business are two different things. Capitalism v. government isn't the issue.

    The issue is what is a person worth in a free economy. While I think that good management is very important, I can't justify giving one employee a $34 million bonus for one year, which is 20 times what the average person will make over a career of 40 years. This is playground 101! I don't see how bad management is any better than unions or government.

    For the guy who complained that McDonald's pays $12 hr., I would like to know how well he thinks these people are living in a major US city for under $25K? The average McDonalds is't staffed by teens anymore.
  • Schadenfreude?
    I can't decide if this is good or bad. I'd really like to hear what all the "Do as I say, not as I do" types have to say about it:

    http://www.nypost.com/seven/01282009/news/regionalnews/new_york_takes_1b_tax
    _revenue_hit_152412.htm
  • Cajones
    I think you meant cojones. Cajones means drawers (like in a desk).
  • Shameful
    I find it ironic that Obama disapproves on how corporations decide to spend their bailout (stimulus) money. HEY OBAMA, WE DON'T APPROVE ON HOW YOU WISH TO SPEND YOUR STIMULUS MONEY!
  • Really, Seriously
    I've come to the realization that nobody listens to you guys. It's now 5 o'clock in the pm - you posted this comment since morning, and you mean to tell me this is the only response you guys can generate. So I've concluded that you make these ridiculous statements to get people enraged hoping that they will react - but sadly they don't - no wonder you talk this crap about "talk radio is a target". So again you can get some attention, but you, my friend, represents a guilty conscience of the huge salary you don't deserve(not a part of main stream media) that you get for spewing B.S all day long. Here, add one more to your response log.
  • Rob
    Not really worried about the relevance of your comment, just want everyone to understand that capitalism works just fine as long as the government stays out of it. It was only when the politicians decided "hey everyone needs to buy a home and a big screen tv" and forced banks/mortgage companies to enable them that we were headed for disaster. "Consumed by currency" has nothing to do with contractural agreements. There could be lawsuits the likes we've never seen if the legal bonuses are not paid. Obama can't do anything legally about those. Hopefully the Supreme Court would hold up the contracts, I would hate to think if the President had the power to set aside contracts.
  • "Big Business is inherently evil...
    ...because it exploits the workers and rewards the management."

    Well, it is. Any even moderately-observant student of history can find countless examples leading even into the present day.

    For an even more clear example, though this is exploiting consumers and not just workers: The peanut factory in Atlanta that knowingly sent out salmonella-tainted products. The cause of this is the search for ever more profit, they would have lost money having to discard the batch, shut down the plant and scrub it down. Or properly maintain their equipment. And they are not by any means unique in this.

    Oh but hey! Gub'mint regulation of business is bad! The Free Market™ never betrays the interests of the society that feeds it!

    Ayn Rand was a two-bit idealogue hack with no knowledge of how things work in the real world. As are almost all 100% laissez-faire proponents.
  • Capitalism vs. socialism
    For some reason I thought libertarians promoted a lassez faire capitalism, i.e., no state involvement in the marketplace. The strongest, best run businesses survive. Now, apparently, NB believes that capitalism means "limit losses" at taxpayer expense, i.e., it's okay to pay CEOs with taxpayer money as long as there's a "contract." Under NB's definitions, taxpayer money to pay CEO contracts = capitalism. Taxpayer money to pay for non-CEO contracts = socialism.
  • CEO bonus'
    Funny how Mr. President says nothing about the MILLIONS in bonus paid by Freddy Mac and Fanny Mae to the guys that ran both agency's into financial ruin. What transparency???
  • relevance
    Just because you can't fathom the root cause relevance of my comment or want to keep the overall slant right for those consumed by currency doesn't mean it's not applicable. As for Ayn Rand, I don't get real excited over anything the hero of Alan "Bubbles" Greenspan might have puked.
  • Can CEO's form a Union? If so, would the Dems try to break their contracts then?

    Silly?
  • Question...
    Exactly how much of the $18 B went to executives of bailed out organizations? The fact that the Dow is at 8000 and not 8 points to at least some organizations doing OK, so why shouldn't those CEOs get bonuses?
  • Power Grab
    BHO is trying to establish the perception that Big Business is inherently evil because it exploits the workers and rewards the management. With the use of 'wealth envy' he will be able to force PRIVATE NON-GOVERNMENT businesses to knuckle-under to whim of some bureaucrat in Washington with respect to compensation. If the government wanted to break any and all compensation contracts, they should have let the companies file for Ch. 11 protection and let the BK court determine which contracts are void and what compensation is allowed. The government didn't do that, they just pumped the money in. Now the government wants to dictate different terms. There is more graft, corruption, excessive compensation inside the government and government agencies, that should be cleaned up FIRST, before we go on a witch-hunt to find out who in private business is making what compensation.

    Hey, Mr. President, how about you clean up your own cabinet first, then the congress critters and after that you can start spouting off about compensation in the private sector.
  • nail on head
    Rasilo at 9:14,
    How dare you think. Just drink the Koolaid. We have red and blue available.
    As long as we stay mired in the lower end of the 3rd level of conscienceness (and that's being optimistic) this will continue, steroid up consumption to meet "contract obligations" followed by an economic heart attack. Boom bust boom bust.... Such a great way to plan a decent retirement. But the vultures are always there to scarf up the dead, ever fattening up their bottomless, putrid guts. What a pitiful existence of which to be proud.
  • Obama-nation
    We need to get over it and join our "comrades" in the Democratic Party.
  • Hand out the shame
    All those who voted for the housing bills that got us into this mess to begin with should have lawsuits filed against them. And ain't it amazing how this all came about just before the election. September we were fine. October all hell starts to break loose. Now I'm not one for conspiracies but this timing sucks.

    Impeach all the signers of the Housing bill from 1995 and 2005.
  • On Wall Street, a big chunk of 'bonus' is really 'lump sum salary'
    People need to chill out on the 'bonus' stuff.

    For a vast number of the people on Wall Street, their 'salary' is in the $90-150k range. I know that sounds like a lot of money to a lot of people, but for the hours they are putting in, their 'salaries' should be at least double what they are.

    So when a 100k a year investment banker associate gets a 200k bonus, a big chunk of that is merely 'deferred' or lump sum salary that is paid out partly in the 'bonus'.

    You see, to pay a 'salary' for a job like that, it would probably have to be in the 200k+ range for the 75-100 hour weeks the people are putting in.

    But Neal is right, people are soooooo worked up over class warfare, they can't see straight.

    My girlfriend is an investment banker, and let me tell you THE JOB SUCKS!! The blackberry rules her life. She gets e-mail at 9am on a Sunday morning and she has to get on the computer for 5-6 hours. Even on a 'vacation' weekend the blackberry is being checked every half hour to an hour.

    So when you actually SEE the work that these people are putting in, I have no problem at all with the 'bonuses' paid to the 'workers' on Wall Street.

    It is funny how people get all worked up about 'corporations' spending money, but not the guvment spending money. It is as if a corporation spending money does less to help the economy than the government spending it.

    Who is John Galt?

    Steve
  • It' one of two things and both are scary
    I wanted to give Obama the benefit of doubt. I know he had to say some of those socialist things to get the nomination of his party. We did not hear too much of that kind of thing after he was the nominee. But now, God help us, we discover that either Obama is completly ignorant concerning the economic and political system that made America the greatest nation that ever existed, or he's a commited socialist.
  • 6 of one ... hald dozen of the other
    Neal wrote "One of the candidates tells the search committee that there is no way he can prevent a loss .. but he might be able to limit that loss to $1 billion instead of the projected $5 billion. An agreement is reached that the new CEO will get a new bonus at the end of the year equal to ¾% of the difference between the projected loss and the actual loss."

    whats the difference? he didn't really save them any money, just changed the accounting. the company expenditures are still in the red $5b.
  • Boogers = Bonus
    Let's say I start a company with my own money. I'm selling widgets and I pay bonuses to my sales staff. I'm losing money, so I hire a sales manager to help me reduce my losses.

    I tell the sales staff they will earn modest bonuses based on their actual sales. I tell the sales manager that his big bonus is based on the number of boogers he can pick from his nose while riding a tricycle under a full moon.

    The sales staff works hard and saves my company from bankruptcy. The sales manager picks a big bucket a boogers and is awarded a giant pile of cash.

    This is probably not a wise or fair way to pay employees. Too bad. It is my company. If you don't lilke it, start your own company.

    Lastly, does government have the right to use force to make me change my policies?

    I think 51% or more of the population would say 'Yes.' I'm preparing my escape plan.
  • Retention bonuses
    What many do not realize is that the failure to give bonuses to the people that make your company a profit will cause them to leave. They will start their own boutique firms or go to those already in existense. That is how these other companies started in the first place. If you lose the force that makes you money, then you will fail and all those tax dollars will be totally wasted.

    This happened with Merryl Lynch. They failed to provide retention packages after the merger and boutique firms can in and took all of their best people. How are they to recover without them?
  • Never
    The liberal mind will never be able to comprehend that big government is bad. Never understand that spending taxpayer money on the losers is a bad idea. That regulating the private sector is a bad idea. Never will they understand these things. No matter what.
    In addition, when all this falls apart despite the efforts of some, it will be the conservatives fault because, in their mind it was too far gone to 'rescue' by fault of the Bush administration even though it was the Dems holding power the last 2 years. Yet if we say nothing and let them continue on this course and it falls apart (it will), it's still the conservatives fault for not trying to stop them. That's the liberal mind. Either way, we all lose.
  • Obama isn't the only socialist
    Why is Neal so quick to forget that it was George Bush that started us down this path of socialism? Demanding that the banks take government money? Bush. Making demands of executive pay limitation is only the next rung on the ladder...
  • Bonus
    Didn't Congress just vote themselves a raise and increased "operating funds"
  • Competition
    Why shouldn't the corporation in Neal's example be at a hiring disadvantage? They recieved an unfair cash flow advantage.
  • ...Why
    Why is it that only successful people are being asked to be "responsible"..most of them must have been pretty damn responsible to get there in the first place. Unless of course you follow the theory that all successful people obviously stole and trampled the poor to get there.

    At what point are people who screwed up and bought things they can't afford responsible? When the US is flat broke and has no money to give for welfare? Sometimes I feel like we NEED another great depression so people have no exscuse left when 50% of people in the states are destitute.

    "Hey Im down and out" "Too bad, so are the rest of us"

    I live in a city where people are getting 12$ an hour working at MCDONALDS
    (high school dropouts mind you) and complaining about being broke.
  • Bonuses
    According to your scenario, yes he earned it. I however believe that once some stimulas money is taken by a company,all previous contracts must be renegotiated. Sorta along the lines of the UAW. You say they are the best and the brightest? I don't see it that way, let exec's leave if they don't like it. Betcha they don't. I'm not against big bonuses as long as they are paid from shareholder (not guvmint) money. Until a return of profitability, no bonus. IMHO
  • Bonuses vs. Job slashings
    CEO gets hired to reduce losses and gets bonus options depending on performance.

    CEO makes decisions.

    Workers do the actual work that actually manifests the reduction of losses.

    Workers get slashed.

    CEO gets bonus.

    That's the context he's talking about, right there. Companies taking bailout money, slashing thousands of jobs, and then paying out multi-million-dollar bonuses to CEOs.

    A business requires both leaders to make the decisions, and workers to perform the actual work. It cannot function properly without both. Destroying one while rewarding the other is counter-productive for everyone except the rewarded.

    Would this story pan out the same way if the CEO got laid off and the workers got all of that bonus?

    Go ahead, just try and get your grand free-market capitalism entrepeneurship working without anybody to do the actual work while you make all of your important business decisions.

    Try and get it working while you do all kinds of work with no professional direction.

    The idea in place here is that there is something fundamentally wrong when the team of the business accomplishes something deemed bonus-worthy, but only one member gets that bonus while all the rest get told to pack sand and get another job.
  • Shameful Tax Cheat's Severance is Shameful
    The Shameful Tax Cheat Sec of the Treasury received a $400k+ severance package. If it was part of his employment contract, fine. But clearly the disdain PO has for enforcing employment agreements, including bonuses, must be limited to Wall Street. Does he know the metrics that were to be achieved in order to get the bonus payouts? Of course not. Tax cheat Geitner's inability to properly oversee the NY banking system while retaining his healthy severance package is what is really shameful...that and the Liberal bucket list of projects being pushed as stimulus.
  • Why the bailout was bad
    This is a perfect example of why the bailout was a horrible idea. Now the government and taxpayers are part owners in the failing companies and we have to get wrapped up in the details of their operation.
    While there is a lot of scorn that should go to the government on the bailout, when is a SINGLE CEO going to be held accountable for a failing corporation?
  • Hypocrite's in Government
    What you must remember is that PREBO has NO experience except in Community Organizing and running for office. He never had a real job leading people. He doesn't know what is right because of his associations.
  • Bailout etc.
    This is sick. PezBo is complaing about CEO’s making too much money. Hey – these guys pay taxes on that money – lots of taxes. How may welfare recipients does it take to get you as much in tax inocme as one of these CEO’s? Don’t you want them to make more money, so you will have more tax income to give to lazy people who won’t work? Hard to answer that one without sticking your foot in your mouth. How do we carry this message to people who don’t already understand it – face it, Jamie and Neal are somewhat preaching to the choir.
  • Seriously?
    Forgive me in advance for the foolish question, I went to a government school. How is pure hatred of the ideals our country was founded on not an impeachable offense?
  • Our System Is Rigged
    Once you stop and think about it, our whole society is rigged so government will run everything and take care of everyone. It all starts with the brainwashing government education gives us.
  • Obama Delenda Est
    http://www.cafepress.com/Philosufism/6337619
  • Shameful...as in
    slamming Wall Street CEO's for taking such bonuses during difficult economic times, while just hours earlier he and his party guest dined on $100 steak cutlets? Now that is shameful. So I guess that campaign statement of Yes We Can should now be changed to Yes, We Will, and You Can't Do Anything About It?
  • Hypocrite's in Government...
    PBO has been saying how bad the economy and that EVERYONE needs to sacrifice and "have some skin in it". Well I don't see anyone complaining about "Members of Congress are slated to receive a $4,700 pay raise beginning in January, increasing their annual salaries to $174,000. The increase for 535 House and Senate members would cost taxpayers more than $2.5 million."

    I guess the sacrifice is just for everyone but them.
  • So people should take extra money from a losing entity?
    So CEOs should take bonuses from a company that is losing money?
    Aren't tax credits like bonuses?
    Isn't the government operating in the red?
    Shouldn't the welfare recipients be called shameful?
    I'm thinking this makes a lot of sense.
  • Wards of the state.
    These banks and investment firms are wards of the state after taking the welfare. I don't like it either but the TARP was passed in Congress despite the lack of support of the people! Yes, Neal banks DO have a choice as there are SEVERAL banks that chose NOT to take that welfare check. BTW, I used to do business with BOA. Not anymore! I've taken my money to a bank locally that DIDN'T take the TARP money. A little more inconvenient? Yes! But I try my best to not do business with these welfare queens!
  • govt bonuses
    I work for the govt. I got a bonus. So did everyone else I work with. I'm going to get one next year too. (don't ask about our productivity)

    Shameful indeed.
  • GOVERNMENT GOOD. CAPITALISM BAD.
    I guess Obama wont miss the tax revenues from the evil corporate bonuses. LOLOl
  • Does he realize the power of the internet?
    So he rails against Wall Street bonuses the day after NY Newsday writes an article detailing how the 44% decrease in these bonuses is going to cost NY about $1 billion in revenue?

    http://www.newsday.com/news/local/newyork/ny-bc-ny--nyeconomy0128jan28,0,5046516.story?track=rss

    Unbelievable.
  • the stuff in the shovel
    Man the stuff stinks! Restraint, discipline, and responsibility?! How about restraining from buying that HDTV that you don't need cause you can't really afford it? How about having the discipline to save money for things instead of living paycheck to paycheck? How about personal responsibility for entering into a mortgage agreement that you couldn't possibly afford?
  • OUR PRESIDENT
    Let's not beat around the bush here. This is enough evidence for me to prove a case where President Obama is an anti-capitalist ... a socialist if you prefer.
  • Government Good. Capitalism Bad .
    Government is everyone's business, and the concerns of a private business should be as private as possible. Outside of applying and obeying sensible laws, government and business should be as separate as government and religion. When government and business are as involved as they appear to be, one can expect corruption (Madoff and the SEC if the rumors are correct is just one recent example) and exploitation going in all direction.

    I have no problem with a talented person being paid well. But a real problem is that many American businesses have developed a nasty top-down attitude (just like our government officials!) that involves more than just top executives. And what many executives, managers or bean-counters don't seem to understand is that it hurts business and the nation as a whole when society is as divided as it is becoming.

    There is a real dividing line in the country where work and the person doing the work are not valued. Wages for many people (outside of the unrealistic unions) have been going down against inflation for some time, and the answer to the problem is to import as much cheap legal or illegal labor as possible, which is corrupt and harmful in itself--and government is heavily involved with business when it comes to legal and illegal immigration.

    I'm going off an a tangent, but the high-handed attitude shown to the American public is completely evident in the corruption involved with immigration alone. Americans schools are so bad that Americans are expected to import skilled laborers (many of whom we pay to educate!) while having wages dragged down by the unskilled legals and illegals also brought in by government and business.

    Government and big business have been heavily involved for quite some time, so it is naive or dishonest to call one group the victimizer, and the other the victim. And it can be argued that both government and business are a burden on society at this point.
  • Capitalism
    I am all for capitalism and absolutely agree with Mr. Boortz example. However, that being said and being in the finance business, there were mistakes (since I can't prove criminal intent) I will leave that unsaid, but clearly an egregious display of greed and minimal risk management, maybe no risk management. Too reward someone or even underlings to such poor execution regardless of contracts is shameful. There is no doubt these contracts need to be reviewed and language addressed in the event of outright failure.
  • SHAMING CAPITALISM
    Obama's shaming of Wall Street businesses for paying bonuses proves he doesn't know anything about business. Sometimes the projections for these businesses is a large loss. Now if these businesses lose a lot less than expected, they might have promised a bonus to certain individuals that met their performance standard. There are decisions by individuals that save the business money that warrant a bonus. Still, their are contracts where certain individuals in the business get bonuses for other positive acts. Just because the business is losing money doesn't mean you don't pay these people bonuses because you might not want them leaving and going to another business. Individuals depend on these bonuses as part of their salary. I think Obama wants the government to have access to all records so it can make the decisions for these bailed out businesses of how salaries are distributed. This is fascism. Obama is very good at the wealth envy game.
  • Government vs. Capitalism
    I may have been Government educated but Neal's analysis of this issue is dead-on (even I understood it). This is the kind of commentary our constitutionally mandated journalists should be writing and preaching to the American people. Keep up the good work - its up to your listeners (and readers) as well as the rest of Talk Radio to get this message out to the rest of the dumb-masses!
  • Stupidity
    These same companies which are now begging and getting taxpayer money were the same companies that paid huge bonuses to their CEOs in the past 7 years. The rule should be: if you paid ridiculous bonuses to your CEO in past years, you get no bailout. Then all these companies would fail, and learn not to be so stupid with their bonuses.
  • Capitalism works with responsibility
    First - Whether or not some of the companies asked for bailout funds, the money was for not only bailing out but to encourage lending. I don't remember reading about anyone kicking and screaming NOT to get bailout funds outside of suggesting it may or may not help the economy.

    Second - Screw the bonus contracts. How many were based on performance that wasn't met? We the people are under tax laws and codes. Due to risky lending practices OUR tax revenue had to change some during this crisis. So can a public company's bonus "contract" if that's even the case. Who's kidding who? Giving a million dollar stock bonus to a CEO does NOT create jobs or stimulate the economy. It sits and collects interest for a decade or two until the CEO is ready to retire in many cases. Then, maybe, he'll start spending a small percentage of it.

    I love it when people make money. A lot of it. But considering your example, a household loses a job and income. It is now on a deficit using saved cash to stay afloat. The head of the household still doesn't have a job and salary but says, "Hey! We dipped into savings $500 less than last month! Let's give ourselves a bonus out of that to the tune of $300 and buy one of those Blu-Ray players."

    See how stupid that sounds? It's about stimulus. Not padding pockets and that's what Obama was saying.

    I voted for John McCain but Obama's right on this one.
  • Has he earned it?
    Depends on your definition of earned.

    Yes, he met the terms of his contract, however I still fault the Board for agreeing to his terms because it is almost a certainty that there were thousands out there who could have done the same job, kept the losses to somewhere in the 1 - 1.5 million range and would have accepted a salary an order of magnitude smaller an no bonus.

    Also there comes the question of HOW he saved that 4 billion. I have worked in big corporations too long to trust any of their accounting, especially if it affects their bonuses.

    Finally, even if the savings were real that does not mean they were the best moves for the company. By agreeing to a contract that rewards the CEO for earnings/losses in this one year all you have done is create a situation where he will focus on short term benefit at the cost of long term sustainability and profitability. More than likely some of that 4 billion in "savings" were losses that should have been incurred and written off this year to improve the companies profitability going forward into the future but the CEO is not rewarded for that and so will not focus on it.

    So has he earned it? Sure, by the wording of his contract. However, that contract should never have been written and it is the height of irresponsibility for the Board of Directors to issue any contracts with those types of clauses and the company as a whole deserves to be punished for their directors irresponsibility.
  • Obamaocrite
    What a hypocrite! The Messiah criticizes bonuses while the should-be-in-jail TAX CHEAT Geithner just received a $500,000 severance/bonus after leaving the Federal Reserve Bank of NY!
  • Socialism the new fad
    Prez BHO, amazes us every day. GWB had his share of problems with fiscal responsibility, but BHO is bringing a smile to Marx, Lenin & Mao as they sit in hell.
  • Corporate bonuses after bailouts
    Sorry, Neal. For once I can't agree with you.

    Once you take the dole, you do what you're told. That Merril Lynch bozo who spent a million bucks decorating his office was no different than a welfare brood mare trading her food stamps for crack.

    Anybody who takes my money to avoid dealing with the consquences of their own stupidity can damn well do what I tell them.

    And I say -- no profits, no bonus. End of story.
  • Government Good
    And all the while, according to Drudge, the Prez dines on $100.00 per pound beef and keeps his thermostat turned up so he can go around the oval office in shirt sleeves. Do as I say . . .
  • And while were at it, if the big 3 CEOs decide to work for 1$ a year won't that qualify them for all kinds of welfare programs? Not to mention lost tax income to the government...
  • Stimulate me, baby!
    Can we please just end this charade? It's not stimulus when the money goes to pet projects that don't actually do anything but add to the government payroll and throw a bone to lobby groups and others who helped King Barry ascend to the throne! Democrats, have you ever heard the term 'reality check'? No, of course not. It's not in your DNA. This 'well, we won and you lost' mentality isn't really evidence of the 'Change' you all clamored for. It's payback time and all you care about is making Republicans suffer. Who cares if the country goes broke? So waht if our grandkids will pay for this over their lifetimes? There is a reason why you ahven't been allowed to sit at the grown up table.
  • Bonuses and Pork
    What President Obama should be more ashamed of is the blatant hubris of the members of congress taking the taxpayers money and using it to buy votes, via Pork Barrel Spending to get more votes, to enrich themselves. If the President wants to show some leadership, he should be dressing down the congress and senate for their irresponsible and shameful spending of the taxpayers money.
  • I also wonder what part of those bonuses were paid out and/or earned in the months prior to the meltdown. There are plenty of employers who have systems wherein bonuses can be earned much earlier than year-end.

    But Neal's point remains ultimately the most important one: the nerve of that self-righteous charlatan!
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