Execs Get Golden Parachute; Taxpayers Get Golden Shower?

The Bush administration is carrying the water for Wall Street executives with regards to their greed for more unchecked compensation. Voters need to let their elected officials know that they are unwilling to take another golden shower in order to enable more golden parachutes.


Commentary By: Daniel DiRito

The more I see and hear about the bail out of Wall Street, the more I oppose it. Here’s the issue. Taxpayers are being asked to ante up for the good of the nation…and to do so with minimal information and even fewer details. At the same time, the White House is suggesting that any limitation on executive compensation may lead companies to decline participation in the program. I’m calling B.S. on this one.

From The Washington Post:

After 7 1/2 years of drift, President Bush has finally returned to his compassionate conservative roots with a heartfelt plea to Congress to help a needy and deserving group: those Wall Street CEOs who, for all their hard work, have been unable to lift themselves up by their wingtips.

Treasury Secretary Hank Paulson (R-Goldman Sachs) made the rounds of the talk shows on Sunday, pleading for financial executives to be allowed to keep their multimillion-dollar compensation packages even if their companies need to be rescued by the $700 billion federal bailout.

“If we design it so it’s punitive and so institutions aren’t going to participate, this won’t work the way we need it to work,” Paulson, whose net worth is said to be north of $600 million, told Chris Wallace on “Fox News Sunday.”

“To have this program work, we don’t want to make it punitive and make it difficult,” Paulson advised George Stephanopoulos on ABC’s “This Week.”

It was a message of mercy and humanity – who, after all, would be so cruel to deny executives their eight-figure bonuses merely because they drove their companies into insolvency? – and administration officials and Republican lawmakers joined the cause of the unappreciated CEOs.

Give me a frickin’ break…just how stupid does the Bush administration think we are. Further, if this isn’t a ploy to manipulate voters, just how damn stupid is the Bush administration? Let’s look at the logic.

First, if we assume that Wall Street is perilously close to collapse, then they need our help, right? Second, if they aren’t willing to accept our demands for fair executive compensation, we have every right to deny them our help. Thirdly, if they have the ability to forego our help in favor of their huge compensation packages, then they aren’t in that bad of shape, right? Fourth, if these companies can put their self-serving interests first, why in the hell should voters forego theirs in order to bail them out. Fifth, if the Bush administration can’t reach these same logical conclusions, then they have no business managing a lemonade stand…let alone the largest bail out in U.S. history.

Honestly, it’s time for voters to call the bluff of the administration that drug us into this mess. If we’re going to get screwed, let’s get screwed on our own terms. There is no plausible rationale to grant unlimited authority to the very people who pushed us into the financial abyss. Beyond that, there is absolutely no justification to take an unwanted screwing, write a huge check for it, and thank the Bush administration for putting it to us.

Truth be told, we have no assurances that this bail out will work. For two years, the Bush administration has told us the economy is sound and that we aren’t in a recession. Two weeks ago they assured us that the Fannie Mae and Freddie Mac seizure was the answer to our problems. In short order, they bail out AIG after telling us the bail outs were over and these companies needed to seek their own solutions. Days later we’re told the sky is falling and we need to bend over.

No way…no how…I’m happy to let it burn to the ground before we give Wall Street a free pass. As they say, beggars can’t be choosers. If they want more of our money, it’s on our terms or to hell with them. Let’s see who blinks first.

ONE ADDITIONAL POINT:

We’re hearing a number of insiders suggest that homeowners bear some responsibility for this predicament. The argument contends that too many of us bit off more than we could chew. OK, I’ll accept that there’s some truth to that contention…but it isn’t the whole story. The whole story needs to consider the fact that the average American has spent the last seven years working harder and producing more…for less money.

The fact of the matter is that millions of Americans gambled on the historical data that home prices will rise. When they did, many of them did so because they needed money and the only means available to obtain it was to borrow against the equity they thought they had in their homes.

Yes, that may have been shortsighted and imprudent…but so too is it detestable that our elected officials failed to be good stewards of the economy. The Bush tax cuts for the wealthiest Americans didn’t trickle down…and the few jobs that were created weren’t enough and they weren’t higher paying jobs. Instead, far too much of the Bush tax package was invested in high risk financial gimmicks designed to create easy profits.

If we’re going to assess blame, then let’s not forget where the bulk of it belongs. It belongs squarely on the backs of those who have promoted a morally bankrupt economic philosophy that concentrates wealth in the hands of the few at the expense of the hard work of the many.

There’s one additional saying that applies to the current situation of our greedy cash chasing countrymen…”bet –em high and sleep in the streets”. All that’s left to be said to our Wall Street friends is, “Welcome to Main Street…and don’t forget to bring some cardboard boxes and a warm blanket”.

Cross-posted at Thought Theater

Tuesday, September 23rd, 2008 by Daniel DiRito |

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