John Polomny

Obama’s Compensation Limits Amount to Zip

This compensation bruhaha is just populist red meat for the hoi polloi.

What Would You Do With Just $350 Billion to Spend?

"Still, what exactly should the money be spent on? I’m tempted to say: housing, because this continues to be a major unresolved problem that looms over both consumers and their balance sheets. Unfortunately, however, the banks remain a greater priority."

No and No. Housing got into trouble because of malinvestment, greed, and flat out fraud. The only thing that can solve the problem is to let the price of houses fall until they reach market clearing prices. As far as the banks, quite a few of the large regional banks are not in trouble. I have no problem with letting the likes of Citigroup go under along with their inept management. Other investors, banks, managers will then come in buy the bankrupt assets and then the healing process will begin. Rewarding failure and the losers who made bad calls at the banks during the bubble is no way to fix this problem.