[Vision2020] TRICK or TREAT!!

Fri Oct 31 17:33:40 PDT 2008

So much for the language in the bailout bill (aka The Great Fuck-Over of 2008) allegedly preventing such corrupt theft.  It would not be anything that I would ever, ever consider doing, but I'm surprised that there hasn't been assassination attempts against any of the CEOs of the corporations that are pulling this thievery.

W.
  ----- Original Message ----- 
  From: donald edwards 
  To: vision2020 at moscow.com 
  Sent: Friday, October 31, 2008 3:54 PM
  Subject: Re: [Vision2020] TRICK or TREAT!!

  $50 billion of bailout going to employee bonuses
  Posted Oct 31 2008, 07:30 AM by Andrew Horowitz 
  Rating:  
  Filed under: Merrill Lynch, Morgan Stanley, Goldman Sachs, banking, Andrew Horowitz
  As if the economic bailout by U.S. taxpayers isn't enough to make you sick to your stomach, new information has come to light that several banks are planning to pay billions of dollars in year-end bonuses from the bailout funds they received.  Investigations are beginning into the nine banks that took in the first $125 billion -- the same $125 billion that was supposed to be used to unclog the credit system which was preventing banks from providing much needed funds for individuals and businesses.

  There are many feathers in a ruffle over this and New York Attorney General Andrew Cuomo and several congressmen are furious that over $20 billion has already been earmarked as bonus funds for management and employees. Unbelievably, that is just the estimates from Goldman Sachs, Morgan Stanley and Merrill Lynch. There are six more banks that are also working on similar heists.
  Here is their rationale for using that money: It is reported that the financial industry pays base salaries in the range of $80,000 to $600,000 and apparently that is simply not enough to keep some of the best and brightest working to keep their companies profitable. It seems that if they were paid only this meager amount, the company would risk mass defections. That would be a real problem...or would it?
  Maybe it is time to peg annual bonuses to something meaningful like profitability. As I recall, not only are these the firms that have been losing money (as is evident by the need for a massive multi-billion dollar bailout) but they have also been shown to be the creators of securitization, derivatives, sub-prime mortgages and other toxic credit that is the root cause of this historic global economic catastrophe! 
  Maybe I am being too harsh? Perhaps management is entitled to hundreds of millions in bonuses for the hard work they do, day in and day out. You have to feel sorry for them as most have had to give up their private jets and instead fly in a cramped seat in first class. Surely most will now have to wonder how they will deal with the excess workload as they have had to fire thousands of employees. Also, they will need to use a good chunk of that money to rebuild their retirement plans as much of their wealth was tied up in their company's stock which, under their leadership, could be down more than 60% just this year alone. 
  What do you think?
  Related Reading:
  Listen: TDI Podcast - Predicting another 40% down 
  Henry Waxman Requests for Bonus information
  Wall Street banks in $70bln staff payout 
  Will Banks really need to curb CEO Pay?
  $500 billion of 401k wealth is destroyed
  Andrew Horowitz is a money manager and the founder of Horowitz & Company. He is also the author of the bestselling book, The Disciplined Investor . Check out his latest investment idea or listen in as he hosts, The Disciplined Investor Podcast.

  Back to Top Stocks Digg this |  Email this |  Link to this 
   Comments  

  Seems to me if I were to benefit from say $150,000 bonus, I'd pay off my mortgage and my bills and be debt free.  Why doesn't the govenment give that 700 billion to the people to pay off their mortgatges (mortgage problem solved) and if you divide that between the 3 million in the country??  Even if you tax it there would still be enough to bail out the people in foreclosure and even those who aren't but may be soon. Viola! no toxic mortgages and people would be able to spend which would restore confidence.  Then if the govenment would regulate the credit card companies and those golden parachute salaries ...... 

  Mesha (Posted 10.31.08 11:50 AM) Report Abuse 
  This is why Paulson and Bernanke...and B. Frank...did not want any oversight or scrutinity of the plan...it was just a big fat payoff the their buddies on Wall Street...our Gov't and Wall Street are just crooks bankrupting this country.  
  Don't believe it?  What if you stole millions from investors, pension funds, taxpayers...where would you be?  To date, ZERO regulators...ZERO lawmakers...ZERO execs in jail.  They just turned this into a Socialist country and left with our money and are laughing all the way to Switerland!   

  Matt T (Posted 10.31.08 11:50 AM) Report Abuse 
  The thing they should have done to these guys was to freeze their personal assets and repay the systems they bilked.  They bilked their customers in bad deals, they bilked their own companies by taking money they never really EARNED (you know like with a real job).  Now for the knockout punch, after we are forced to pay for their mistakes as taxpayers, after paying for their mistakes as customers, they get BONUSES!!!!!!!!!  Where can we all sign up for jobs like that.  If I lost money even at the rate 250.00 per month I would be looking for another job.   What makes these people feel that they are so much better and more important than the people they make their living off the backs of???? 

  Shane Burrows (Posted 10.31.08 11:50 AM) Report Abuse 
  I managed a small retail business. I had a base salary and received a year end bonus based on company profit.  Guess what? If we weren't profitable...no bonus.
  A third grader could figure that one out. One again our government, who can't balance their own check books, are giving financial carte blanche to a bunch of criminals. Ted Stevens must be running that show. I am beyond disgusted.

  Scott (Posted 10.31.08 11:51 AM) Report Abuse 
  I'll pray for them.. the bible says it's easier for a camel to go through the eye of a needle than for a rich man to go to heaven...
  you better get on your knees

  Debbie (Posted 10.31.08 11:52 AM) Report Abuse 
  I am sure that each one of you commenting has the ability to do perform their job responsibilities - if so perhaps you should apply for the job at a reduced salary.  

  NoBoma (Posted 10.31.08 11:52 AM) Report Abuse 
  Pardon my french, but this is ABSOLUTELY ABSURD. It's time for another tea party, but this time in DC. When does it stop ? The rich stay rich after 'gambling' away their fortunes - It's like 'WHERE'S MINE' ?  Do you think this makes our economy stronger ? No, it makes the lawmakers look like BLITHERING IDIOTS giving a multi-billion dollar early X-mas gift to all their Wall Street pals. Enough is enough - Let's see if Nov. 4th changes things. Not likely. That's all !

  Fed Up With the Feds (Posted 10.31.08 11:52 AM) Report Abuse 
  I can't believe that our so call government is giving money to help solve this that was cause by greedy CEO's and the Board of directors let them get away with. That's not fair, there need to be control/limits on these CEO's, now we are paying for there stupid mistake
  Mike

  Mike (Posted 10.31.08 11:53 AM) Report Abuse 
  Bonuses are used as rewards for excellent performance and as a means to retain top talent from defecting to competitors.  That model is dead in the banking industry, as I don't think their is any worry about an executive from Goldman jumping ship to go to merrill because he could make more bonus money.  The market has corrected, adn this the financial industry incomes will be corrected as well.  

  Matt (Posted 10.31.08 11:53 AM) Report Abuse 
  I remember not to long ago, Obama had reservations about this bailout and said we really needed to know how this was going to be used...he caught a lot of flack for it and then decided to go ahead and endorse the bailout because of the constant criticising and that something needed to be done, McCain was all for it no questions....wmmmmm, guess everyone is scratching their heads now and saying maybe Obama and others who were not sure about this had a point......
  My husband does not get a bonus unless he earns it through helping the company he works make gains....why should it be any different with large ones like these...This is like rewarding a child for bad behavior....shame on these companies!

  kmorgan (Posted 10.31.08 11:53 AM) Report Abuse 
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