Thursday, September 25, 2008

Pay caps for failing banks is one of the stupidest ideas in history. First thing, those banks are in trouble because Goldman Sachs and Morgan Stanley were paying for top talent, and they were left with the dregs. The banking system is freezing up because a bunch of underpaid castrati don't have the balls to put some money on the line. Now Paulson wants to institutionalize Goldman Sachs' hegemony, by legally prohibiting those banks from participating in the marketplace for talent.

This is what a compromise looks like?

And, besides, have the senators ever heard of "trading"? It is where one party transfers something to another party. If there really is pay cap limit to participate in the bailout, look for people to establish shell companies with pay caps (but plenty of equity) that simply cycle trades to the fed.

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