The Market Hick

Distinguishing Between Out of Favor Sectors and Doomed Ones

The real cost of bailouts should be bourne first and foremost by the people running the companies being bailed out. Until a CEO and his handpicked board of directors go bankrupt along with the company, we will have no moral hazard. Instread the best paid job continues to be the CEO of a bankrupt company.
What we need is the embrace of a new compensation scheme whereby executive officers and boards of directors are directly responsible for a portion of the company's debts that is related to the amount of stock rewards and compensation they receive.
Of course you may say no one in his right mind would take such a deal, but everyday people take such risks- they're called small business owners!