"Denninger believes that a collapse of our system is imminent. Slide says to trade what is given and don't be a stupid bug. I think Slider and Denninger are closer to each other than many others after reading both for a few years. Mish as well of course. Should go without saying."
This is amazing; Brad Sherman is for taxing the hell out of bonuses for the explicit purpose of getting the government out of these firms. His view is simple: If you're working for Geithner, why should you make more than Geithner?
I like it.
You don't like having people working for $250,000 a year in total compensation or less? Fine - give back the damn money and run the firm any way you like.
If you, on the other hand, are such poor managers that you require the US Taxpayer to subsidize your operation then you cannot claim to have the "brightest and best"; you've proved you're wrong! So shut the hell up and accept both the money AND restrictions.
EXACTLY.
We need more Representatives like the HONORABLE Brad Sherman.
Many more.
The argument that "Congress made a mistake originally" is in fact an argument in SUPPORT of what they are doing here, not one against it. For if Congress made a mistake then correcting that mistake is required.
I love the whining about "contract law". Where were those complaining about this when AIG wrote CDS against no capital? Contract law calls that fraud folks - intentionally inducing someone into an agreement that you have no intention or ability to perform on. Further, we can do fraudulent concealment too, which is what the law calls it when you hide the fact that you're functionally insolvent for more than six months as it becomes apparent to you that you won't be able to perform, and while you know this, you draft "retention bonuses" for the very people that put your company in this position.
Never mind Goldman disclosing that they got 100% payouts on the AIG "contracts" that had no prayer in hell of being any good under the terms of that contract, because nowhere in that contract was a US Government guarantee!
All this whining is not only outrageous it is CRIMINAL and I for one am tired of it.
If "The Street" wants to throw a hissy fit and crash the markets over the fact that their fraud is now being met with outrage and punitive action then have at it.
They're lucky that the "punitive action" isn't coming in the form of 100 year prison terms or worse, angry mobs of citizens performing an 1873-style "banker hanging" on the lampposts, and might want to consider that if they keep this crap up the government and citizen response might morph into one of those other two possibilities.
I've long advocated for #1 but I'm getting darn close to where I'd cheer on those engaged in #2.
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Watch the video of Brad Sherman on Denningers post.
Go to the following thread and read the Ticker (first live link) then read the comments.
Denninger believes that a collapse of our system is imminent. Slide says to trade what is given and don't be a stupid bug. I think Slider and Denninger are closer to each other than many others after reading both for a few years. Mish as well of course. Should go without saying.
Take what is given, roll over and do it again. Don't get caught thinking gold will be a straight line up from here.
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