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  • CEO Compensation???

    I'm sitting here, randomly listening to the stock news and I hear a member of congress discuss that part of the bailout includes compensating CEO's.

    I thought of putting this in the "bailout" thread, but was too concerned it might get buried.

    We're staring into an abyss, low income families have been duped into loans they couldn't pay off by companies that practiced unscrupulous tactics...and now they want to bail out the very people who's greed and avarice triggered the whole thing?

    Maybe I misunderstood, maybe I'm oversimplifying this...so I posted this thread for any of you who might have a greater understanding of this than I do.

    WHY are we bailing out CEO's?

  • #2
    Re: CEO Compensation???

    This is really hard to discuss w/o getting into politics, but I don't believe this plan is going to actually help anyone deserving of help.

    Comment


    • #3
      Re: CEO Compensation???

      I would be happy to see some major financial regulation reforms after this bailout.

      Oh yeah, and Obama rules! Just kidding, please don't ban me.
      Water Heater Reviews & Water Heater Information

      Comment


      • #4
        Re: CEO Compensation???

        Originally posted by cpw View Post
        This is really hard to discuss w/o getting into politics, but I don't believe this plan is going to actually help anyone deserving of help.
        This is exactly my concern...much like the way congress votes themselves a raise.
        I find myself wondering if there's some special interests going on in influencing the vote.

        We're on the verge of devastation, yet it wouldn't surprise me at all.

        Comment


        • #5
          Re: CEO Compensation???

          Originally posted by Service Guy View Post
          I would be happy to see some major financial regulation reforms after this bailout.

          Oh yeah, and Obama rules! Just kidding, please don't ban me.
          My point...I want to see it DURING the bailout.

          I get the sick feeling things may get swept under the rug.

          Comment


          • #6
            Re: CEO Compensation???

            Well, It's only October.....what happens when tax loss selling hits at the end of the year?? What happens if the Dow drops 700 points in a week(or less) AFTER the bailout is put in place?(Assuming it passes today)

            Then you have a worse mess.

            As far as CEO's, the winners have already taken their spoils and split. They saw this coming and got out before the last 6 months. When bonuses are based on volume, some questionable debt is bound to get by.

            Credit tends to be cyclical, along with insurance. Most insurance companies will go a few years with no increase and then, bang, up go the rates for a year or two. Same thing with credit. In my business guys were getting financed at a higher rate a few years ago with less problems then when the rates went up. Banks tend to look the other way if they're going to grab a few extra points.

            And hey, everything is a gamble. The subprime was based on housing prices going up faster than the interest rate after the initial period. Then you get the house of cards effect. Most people are one paycheck away from bankruptcy in the best of times anyway.

            Personally, I think the market should be left alone with no bail out. Especially with tax-loss selling season and the Christmas retail season/manufacturing numbers that will hit in January. If I was going to throw some money at the situation, I'd wait till January/February to see how things wash out.

            But then again, that's just my opinion.......
            I'm on "The List" and I love it!!

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            • #7
              Re: CEO Compensation???

              Duck,
              I have a terrific plan for a bailout for the CEOs and CFOs who got us into this mess. Stout oak tree and even stouter rope!
              Do a few of these CEOs in this manner and the greed will stop pronto.
              Oh, did I mention these neck tie parties should be televised for ALL to see?

              Golden Parachute my A$$.

              Jim

              Comment


              • #8
                Re: CEO Compensation???

                Originally posted by Masterplumb
                Everyday when I get the mail there is an offer to me for a credit card with a 10k-25k limit. I know I cant afford to get myself in that much debt. So you know what I do.....I rip it up and throw it out. My point is anywhere you turn someone wants to extend you credit, YOU have to be responsible for your actions and know what you can and can not afford. Bottom line is those people signed their name on the dotted line so they are ultimately responsible. If they were able to afford it the year they closed on their home, they had to know that when the percentage rate went up so did their payment, plus you must realize that taxes and insurance never go down either.
                You and I both know how incredibly bad many people in this country are at decision making.

                Should we really ignore the fact that many "overambitious" business practices have preyed on this ignorance?

                Why are there laws restricting credit interest rates?
                Why are there any consumer protection laws at all?

                If you really want to get down to brass taxes, isn't it the bad decision making of these CEO's that got us here in the first place?

                Comment


                • #9
                  Re: CEO Compensation???

                  Unfortunately, some sort of bailout of these financial institutions is going to be necesssary. It is going to help a lot of the little guys indirectly, they will never know it, but the help will be in the form of them not losing their jobs. So many businesses rely on short term loans to operate their businesses. If the banks can't loan, the businesses can't operate. All the way from General Motors, down to the Farmer who takes a loan to buy seed and fertilizer every year and pays it back in the fall when he sells his crop. IF he can't get money, then he lays off his farmhands.

                  All that being said, any bailout of the banks needs to come with some tight oversight so the money doesn't get pissed away with no accountability.

                  As far as the toxic mortgages go, yes the brokers are unscrupulous. But are the people taken advantage of? Most people spend more time online reading reviews for their new TV that they want to buy, then they do reading the closing papers on their Mortgage. So worried about getting the best performing TV for the money but no concern about what they are signing when they are going 2-300K in debt? If i had no understanding of my closing papers, I would pay a lawyer a couple hundred bucks to read the papers and explain them to me before I signed them.

                  Comment


                  • #10
                    Re: CEO Compensation???

                    Originally posted by JTROANOKE View Post
                    If i had no understanding of my closing papers, I would pay a lawyer a couple hundred bucks to read the papers and explain them to me before I signed them.
                    In NY it is the law that the buyer, seller, and mortgage company have lawyers. I think it was among the best $2100 I ever spent.

                    Comment


                    • #11
                      Re: CEO Compensation???

                      My understanding is there was a lot of pressure put on the Government sponsored Freddie Mac and Fannie Mae to take sub-prime loans with relaxed requirements to help out the less fortunate. The problem is it started a false balloon of values with loans going to people who had no business buying homes to begin with. Now we are all stuck with the results of those who tried to help those who could not afford to buy a home to begin with. It sure seems like taxation without representation to me.

                      Mark
                      "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                      I never lost a cent on the jobs I didn't get!

                      Comment


                      • #12
                        Re: CEO Compensation???

                        Originally posted by Masterplumb
                        Everyday when I get the mail there is an offer to me for a credit card with a 10k-25k limit. I know I cant afford to get myself in that much debt. So you know what I do.....I rip it up and throw it out. My point is anywhere you turn someone wants to extend you credit, YOU have to be responsible for your actions and know what you can and can not afford. Bottom line is those people signed their name on the dotted line so they are ultimately responsible. If they were able to afford it the year they closed on their home, they had to know that when the percentage rate went up so did their payment, plus you must realize that taxes and insurance never go down either.
                        It's a bailout on both sides. People that used they're home equity like an ATM to buy other homes and flippers that took out 6 loans to ride the wave. On the other side, we've got loosey goosey lending to anyone with a pulse. No joke, I predicted this would happen 3 years ago. I told my wife, as my witness, this is going to end badly. People that can't afford a 2nd mortgage let alone one, are getting loans that are WAY beyond they're means. That's going to result in massive foreclosure. But that still won't satisfy the massive debt. Then what? The govt. has to step in. A blind man could have seen all this coming. And no, I don't support any kind of bailout. So what. Individuals or business's should succeed or fail based on their own good or bad investment decisions. We, the taxpayer shouldn't be punished for it or have to pay for it. This country needs a good flushing of the system anyway. A bailout only slows the bleeding and prolongs the inevitable failure of the lenders.
                        let em fail. Life goes on.

                        Comment


                        • #13
                          Re: CEO Compensation???

                          Wall Street wants help because they gambled and lost. I must've missed it when they offered to share the wealth when the money was rolling in.

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                          • #14
                            Re: CEO Compensation???

                            I ABSOLUTELY 100% agree that WE should NOT have to bail any profitable enterprise, nor foolish spender out of their own mistakes.

                            The detail missed in the last several posts...we ALL fail if the economic system fails.

                            I don't think anyone here would look back, in the middle of another great depression, and not agree on a bailout to prevent it from happening in hindsight.

                            My concern, in lieu of a lack of options for our welfare, is that any who contributed to the failure shouldn't be compensated for the losses of their failed decisions.

                            The key here is learning, on the part of our government.

                            Comment


                            • #15
                              Re: CEO Compensation???

                              Originally posted by DuckButter View Post
                              The detail missed in the last several posts...we ALL fail if the economic system fails.
                              Geezus. Doom and gloom. The entire economic system is not gonna fail because of this nor because we don't bailout the banks. Where are you getting this from?
                              Yeah, it affects other markets inevitably and yeah it's going to be a rough ride either way, but the whole economic system isn't going to fall into depression. Sheesh. Panic and fear however will do far more harm. The market will eventually correct itself. Let that be the factor and not the government or anything else. This mentality of "we gotta do something" is rampant.

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