Yesterdays meeting over the proposed bailout turned into a playground brawl. Macaroni was thrown in the lunchroom and some politicians were given swirlies in the restroom. Ok, maybe not to that extent but it is how I picture it in my mind.
The Democrats say they reached bipartisan agreement, the Republicans are not so sure. Obama and McCain were present and I don’t think anybody on the road missed them.
Far from solved, some of the issues are far reaching and cross the line to new ground.
For starters, I am very interested in the draft that would require limits on compensation for the executives participating in the bailout. Yes, you heard right, they are considering limiting excessive “golden parachutes” for the executives that ran the failing companies. I hope it did not take “America’s Best” to figure that one out – unless of course some of the politicians are on payroll.
Why on earth would you not limit the compensation? How about you limit it to say…ZERO. If the companies go under (without the help of taxpayer money) I suspect their current golden parachutes would fail to open under any circumstance – so why should the taxpayers fund any of it?
Another point is whether, going forward, bankruptcy judges will be able to modify mortgage terms. Although perhaps seeming good for the consumer on the surface, these newly structured loans go back to pay…well, us. Good luck finding any lender in the future if the courts can go in and change the terms at any time.
The upside?
It appears they are not looking at dropping $700 billion all at once. The draft calls for Congress to make $250 billion available with another $100 billion on standby.
Why the delay?
Well, I would like to think it is because some people in DC are coming to their senses; that taxpayers bailing out private companies might not be a good thing. In reality I am going to guess the Treasury just can’t print money that quick without jamming up the machine.
Fine, I suppose this is where you look for some witty insights to my mind. A "bio" of sorts. Here is the deal... I ride motorcycles, smoke cigars, golf, kayak, fly, race my car through the mountains, write (a lot), and travel extensively. I am almost old enough not to care what other people think about me...almost. ~Godfadr
Zero looks like a good number for executive compensations on the bailout, if (i’m kind of rooting against it) it happens. Less chance of jamming up the cardboard made time…err printing machine!
I totally agree with the zero compensation for executives. The average Joe business person would have already been thrown in jail for such shenanigans, and Treasury is actually considering rewarding these clowns? Not with MY money they aren’t.
On another note, I mentioned on a previous thread that I had hear WaMu was in trouble, news this morning on CNN is that the government seized WaMu: “NEW YORK (CNNMoney.com) — JPMorgan Chase acquired the banking assets of Washington Mutual late Thursday after the troubled thrift was seized by federal regulators, marking the biggest bank failure in the nation’s history and the latest stunning twist in the ongoing credit crisis.”
http://money.cnn.com/2008/09/25/news/companies/JPM_WaMu/index.htm?postversion=2008092519