The Bank Tax
Posted by JimThe President yesterday fired another salvo in his battle with the nation’s largest banks. He wants to make sure taxpayers get paid back for the bailout. The recent spate of excessive bonuses set off this proposal.
I do not think the size of executive compensation is really the issue here. The problem is that the gang of pirates at the helm of the private financial system have little incentive to loan money. They are making piles of profits by doing very little; borrow for nothing and buy Treasures and make the spread.
They get this rare privilege because they are supposed to grease the wheels of the economy with credit. This is not happening. The frustration in my business is over the top. Banks are behaving poorly again, only this time they have gone too far the other direction.
What happened to the era of conservative bankers? You know, those guys with three-piece suits in the black and white movies? They were dull, prudent and knew the difference between good and bad credit risks.
These guys go from loaning money to people with no jobs to not loaning money to people with good jobs and credit. The President is going after them with this new tax of banks. If the tax does not survive Congress, he still may get his way. Perhaps the 50 largest banks will heed this shot over the bow.
January 15th, 2010 at 8:26 am
“I do not think the size of executive compensation is really the issue here.”
True, it is not the primary issue, but it is THE issue that will rile the masses into stockpiling pitchforks, tar and feather. Bonuses should not be paid to people for poor performance. Those that continue to screw the populace and those elected who continue to do nothing about it have a party comin’ Yeeehaw!
February 26th, 2010 at 11:41 am
Dear Mr. Skidmore,
Not with the price of tar these days.
Yr fthfl srvnt,
Mr. Scott