pimpjui

Why Is Everyone Blaming the CEOs? It's the Government's Fault

Good article, but your main assumption needs clarity. How exactly did the government make banks or other institutions take money? For example, AIG (insurance) comes to mind. Goldman Sachs as well.

Thain's Undoing: Thinking He's Worth It

The reality is that most of these invetment banking leaders who are being bailed out by the government are:

1. Not that smart
2. Very poor investors
3. Very poor leaders/managers

These people as a group have had a relatively sweet position in society because the government has let them have access to lots of free capital in there positions as "liquidity providers" and at the same time turned a blind eye to the risks that they were taking. Understandable when this group of people are generating so much corporate tax revenue. Of course they are not generating any tax revenue now.

Not that smart. Even a 1st year finance grad student can see that their business models are overly dependent to leverage, and their risk models are bogus. I find it strange that a PhD in Electical Engineering only just a engineer when he's doing electirlcal engineering, but somehow a genius when he's doing quant finance.

Poor investors. The main problem, in the end of the day is that these pathetic "investors" can't take a drawdown on their account. Any moron can leverage up to infinity if the banking system allows it. I wish that someone would bail me out everytime I had a drawdown on my account that could break me.

Poor leaders/managers. I am pretty certain that we coud fire all of the managers of these failed institutions, and promote everyone at the same companies from the bottom up, and still not be a position any worse than now. If these "managers" are now government employees, they should get the same pay and benefits as government employees. Their modus operandi is to milk the system for as long as they can get away with it. Get rid of them, the country has nothing to lose. There are plenty of competent people who can do a better job.