Ideas, Linked; Ideals, Inked.

On the Financial Crisis

Privitize the profits, socialize the losses.

I couldn’t say it better myself. Companies which want de-regulation want nothing to impair them from profit. And then when they are failing or faltering, they expect the American people to swoop in and save them. Fannie Mae, Freddie Mac, and AIG are all examples of this. More disheartening is the simple fact that if the government regulated the mortgage and financial markets in the first place, we wouldn’t be in this mess.

Lesson: an ounce of prevention is worth a pound of cure.

Corporations should pay taxes to cover the outlay that we pay for the impropriety of an entire industry. If only a candidate called for stricter corporate taxation rules.

On golden parachutes: lots of talk here, and I agree. I have a couple simple solutions.

  1. No C_O can have a contractually-negotiated severance package beyond that which is offered to an entry-level non-exempt employees with three or more years of service.
  2. All C_O salaries should be performance-based, like recently-injured baseball players. $100K annually, plus risers based on independent evaluations by immediate reports, actual company performance, and a microscopic percentage of profits, let’s say 0.00001%, no greater than $4 million dollars.
I think the last one doesn’t work well as written, but the first one is a simple rule that does. In any case, more thoughts from another blogger.

Filed under: Culture, Politics, , , , , , , ,

2 Responses

  1. pacer521 says:

    I couldn’t say it better myself either. Genius. Thanks for the post and great blogging…

  2. Valerie Curl says:

    Here’s another one: market forces for the middle class and welfare for the rich.

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Creative Commons License
Idealink by vijtable is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.
Based on a work by various sources, as cited.
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