RiskAverseAlert

Outlandish CEO Pay: How to Fix the Problem

Do not shareholders effectively have a vote already, this with their decision to own a stock? I was just thinking how willingness to own shares of companies with lavish executive compensation packages has been, itself, a sign of the times. Plainly, too much money has been chasing too little value, and I do not suppose correction of this trend has yet run full course. Indeed, I imagine the market, itself, will have more impact correcting executive compensation imbalances than any concerted effort at reform (this is not to say, though, the effort should not be made). And I don't imagine executives will be such big fans of the free market on the way down as they were on the way up. For this reason alone, it might be better to forestall any reform effort until after nature has already run its course. The cream ought learn the hard way the price of clinging to a fantasy, just like everyone else.

Was the AIG Bailout a Goldman Bailout by Proxy?

The bigger question here surrounds the City of London's role in bankrupting AIG -- whether this was a purposeful act of war against the people of the United States and whether Goldman bore any complicity in perpetrating an act of treason...

Can We Insure Against Systemic Risk?

And what office of "AIGFP created systemic risk out of nothing by mispricing CDS contracts?"

Why, it was the London office!

There simply is no "accidentally increasing vulnerability." This was done for the very purpose of bringing the greatest nation on earth to its knees.

Cut with the sophism about "systemic risk." The effects of excessive leverage are well-known. This is all we should be talking about when considering the shadow banking system. Its purpose -- largely facilitated by City of London offshore financial centers -- simply was to give the United States rope enough to hang itself with.

Yet as long as there is a Congress, there is hope the people might one day come to their senses and vote that the City -- the ageless enemy to the People of the United States -- be turned into a parking lot.

(Of course, we can count on Mr. Dimon's public objection!)