It's bizarre to watch the collectivist instinct of the people that have come to power in this government. Most of the people come from Academia - like our President, or from government. Few come from the real world - I guess by their actions and words. My friend Marc Hodak nails this with the following post concerning Elizabeth Warren - the TARP Czar.
Elizabeth Warren is discouraged. Not with regards to her job of overseeing TARP spending, on which the Harvard professor has done a very decent job. She is “speechless” at the prospects that certain bankers may get record bonuses this year.
“I do not understand how financial institutions could think they could take taxpayer money and turn around and act like it’s business as usual,” Warren says. “I don’t understand how they can’t see that the world has changed in a fundamental way - it’s not business as usual. All I can say right now is they seem to be winning this argument.”
It’s not an argument, Liz; it’s a business model. The financial services business model is actually quite simple: employees get 50 percent of net revenues. The stable portion of this net revenue is paid out in “salaries” and the uncertain, variable portion of this net revenue is paid out in “bonuses.” The “bonus” portion gets split in rough proportion to who brought in the revenues. All this goes on regardless of how “the world has changed.” Last year, net revenue was lower, and bankers on average got much less. This year, net revenues are higher, and bankers (the ones who survived the carnage, anyway) get more. What’s not to understand?
Read Marc's whole post at the link below.
