Posted on 12/13/2008 4:11:17 PM PST by Leisler
I will ask for a couple million dollars and probably retire with my stock bonuses of several million more. Anyways, since everyone knows that I wasn’t the one that got GM into heir current mess. It’d should be pretty easy to go up from rock bottom. I’d make a killing and I’d be rich and famous! So when do I start?
You ask for a couple million dollars per year?
HOW DARE YOU! THAT IS UNFAIR COMPENSATION! YOU DIDN’T DO ANYTHING TO EARN IT! NO MONEY FOR YOU!
I’ll make this simple for you.
Credit default swaps and the rebundling of them ad nauseum is the primary causation for investment bank failures.
Investment banks are NOT direct lenders for mortgages but they are the ones whom propogated the free flowing unchecked credit markets that resulted in a multi-trillion dollar credit failure.
This whole government forcing of loans to unqualified buyers is a small contributor to the finacial meltdown, but not the primary factor. Alot of the lending to unqualified individuals was self-motivitated and incentivized by big bonuses.
You need to understand what regulations the government enacted and on what entities and ask yourself why investment banks are soo affected as opposed to commercial banks.
So now you think executive compensation thats been negotiated is unfair or do you think that union compensation that has been negotiated is unfair?
Yet.
Given the risks that the execs take with their careers, *most* exec pay is more or less fair - after all, the shareholders approve. Remember, if they can find an exec who is willing and able to do the same job for less money, they will replace the exec.
Given the shitty quality coming out of the union factories and the fact that non-union labor makes far better quality for the same or less money, yes, the union compensation is unfair in terms of a value proposition.
Risk? Dude you’re so full crap.
And as far shitty quality goes isn’t it managements responsibility to direct quality product and oversee quality? Wow all this risk yet we blame the union guy that bares no risk.
Poor riskless little drone in the welfare lines. thank goodnes his brave corporate boss is going to take responsibility for poor management...
I wrote this for another forum, I think it fits here:
The problem with CEO remuneration isn’t the amount of money they make, but the fact that so many CEOs who fail get hired on somewhere else, when it was clearly their fault that they failed. Carly Fiorina (who ruined Lucent, HP, and was a minus on the McCain campaign...) is a great example. Anyone who thinks she’s worth more than $1 as CEO needs to be shot.
How it’s supposed to work is this: As a CEO, you get paid to take the big risks and to compensate you for the possible loss of career if the place should fold through no fault of your own. If the company fails and it’s your fault, you SHOULD lose your career. You shouldn’t get hired on somewhere else because of your “experience” or as a diversity hire (Fiorina). You screwed up, your career should be over. Unfortunately, this is not always the case.
This is not the case with Ford. If Mulally fails to resurrect Ford, that’s the end of his career. Whatever money he has left from Ford is *it* for the rest of his life. Period.
When Soichiro Honda retired from the company he started, I think he was making about $55M per year. Do you think that is excessive? Why? After all, he only started the company, how could he be worth anything? He couldn’t possibly have been important, could he?
I have been in the room when a $20M/year CEO was fired. Nothing he did or was responsible for, it was just that the company had been bought out and the new owners had no interest in the old board or leadership. He never worked again. Not his fault, but he got blamed for it. Yes, it was a dot com. No, I’m not going to tell you which one.
Of course it goes both ways. And that is the payoff isn’t it? GM can’t afford the bloated UAW contract and the union won’t budge. Contracts are rewritten every day in the business world when both sides think it is necessary. Apparently, the unions don’t think it is necessary.
Unions are wasteful and inefficient by nature. They hinder production with massive amounts of work rules that don’t allow for quick adaption to market changes.
Bottom line for me: good workers don’t need unions. Bad ones do.
Small? Small? And, pray tell, what kind of margins do all these institutions work on? Small. What happens when a few AIDS cells are introduced to a persons blood stream? After all, its a small number of cells. What happens when institutions operating on small margins, find out that somewhere amongst their paper, is supposedly safe, solid, Federal Frannie Mae/Freddie Mac approved mortgages that are junk? The paper's get suspect. Toxic. Illiquid. No one wants them. Effective value, zero. A match is small, how many are needed to burn down a house. A bullet isn't one one hundred thousands of a persons body, how many, small bullets are needed to bleed a person. A scratch, a few inches long, and molecules deep in the skin of an aircraft is enough to induce a catastrophic failure of a stress skin panel. Small! Pshaw. Stay away from material science and compound interest if you think 'small' isn't critical.
Nor authorized.
What is quality? Give a rigid, marxist definiton. When done , define, value.
Some folks do that sort of work for the thrill of responsibility. Doesn't take a $20 million golden parachute to get 4 star generals either.
As LED lighting infiltrates into the system that will happen only one more time.
Small as in 400 billion in defaulted mortgages vs. 20 trillion in credit default swaps.
Re scale of your picture: Did you print single-sided or double-sided?
True, but what do you do to attract talent from Boeing to a sinking ship like Ford? (To replace the incompetents that you are pitching overboard.)
That’s why I didn’t use numbers with you because I very well suspected you wouldn’t understand the multiplier effect on them.
400 billion injected, infected into the commercial paper stream. Once the mortgages went south, the commercial paper froze. Since the paper was so, supposedly good it was in everyone portfolio. Which was now frozen. So, how do the mutual CDO’s work, since they were an insurance for rare events and are now required, which they never were structure to do on wide spread systemic failure? ( guess who picks up systemic failure? )
But, go ahead, yet again and bring up something else.
I would hazard one side, like any legal contract. You can go to the link and read the Ford, GM, Chrysler contracts in PDF.
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