One step closer to Fascism...

[armor99]

I saw the following article this morning...

Geithner: No caps on pay for corporate executives - Yahoo! Finance

Interestingly enough.... just an hour before I saw another article that said Obama was going to seek a limit of 750k max for executives. I guess someone told him that would not go over too well.

I would love to know though.... where exactly in the constitution does the Pres or some Czar appointee who is not elected by anyone, have the power to start tinkering with someone's pay? Where is the Supreme Court here? Will no one make a consitutional challenge on this one?

If the govt has the right to set a private companies executive pay, then they also have the right to set anyone's pay that they choose. It can be argued whether exec pay is fair or outrageous, etc. But I would think it could not be argued that legally this govt move is illegal, and without precedent. I just want to hear the Supreme Court try to justify this one.

 

[RunningBum]

Minimum wage is an example of the government's power to tinker with someone's pay.

 

[dex]

"An official said the administration will appoint a "special master" to oversee compensation at firms receiving large amounts of government assistance. The pay overseer would have the power to reject excessively generous pay plans."



Maybe those affected will go to another company. Wouldn't that be the lesson if there was a flight of those people to other companies or start their own. Then the remaining janitor takes the head job and the government heralds it as a Horatio Alger story.

 

[crazy connie]

I wonder what the new CZAR's get paid and how many assistant number crunchers they each have. Let's just humor me for a moment.

16 CZAR's @ $250,000 x 4 years = $16,000,000.00
4 number crunchers per CZAR @$150,000 x 4 years = $38,400,000.00

CZAR cost would equal $54,400,000.00 for this term.

I detest the word CZAR and do not like government in our banking/auto system the way they are now.

I am fearful that the Supreme Court will roll over on everything going forward. There appears to be a good bit of Socialist Idealogy imbedded there.

Just my 2 cents worth.

 

[ls99]

Ah, the Romanoffs have taken up residence in the administration. Welcome to Mother Russia. Is there a proposed cap on the pay for all this high powered administration help, perhaps they should work for performance pay.

I guess whoever appointed the first Tsar, which IIRC was the drug Tsar, set a bad precedent. Hey, so far no Tsarinas.

All these Tsars are way too much. Good thing is that since I and DW retired, federal taxes are way, way down, so are my state taxes. So my direct cost for all these Tsars is negligible.

 

[FUEGO]

I'd like to propose a czar czar. This individual would regulate creation of new czars and regulate pay of the current czars. After all, we have to monitor closely the ever-increasing czar population. Please spay/neuter your czar.

Uncontrolled expansion of the czar supply can lead to hyperinflation of czars. And if there is anything I fear more than the current czars, it is mounds upon mounds of worthless czars in the future.

 

[armor99]

"An official said the administration will appoint a "special master" to oversee compensation at firms receiving large amounts of government assistance. The pay overseer would have the power to reject excessively generous pay plans."



Maybe those affected will go to another company. Wouldn't that be the lesson if there was a flight of those people to other companies or start their own. Then the remaining janitor takes the head job and the government heralds it as a Horatio Alger story.

Yup.... that is about the way I see it. Like I have said before.... it is only a matter of time until you start seeing the govt begin to say things like... "You will not be allowed to quit.... for the good of the country you will be forced to (fill in the blank).... and so on..."

The belief in a utopian like society must be abandoned if we are to survive. That is what is really driving most of this nonsense. The prevailing wisdom (if you want to call it that), is that "if only all the people would do XYZ, then everything would be great for everyone..." And then comes the inevitable... "Well if there are some people that will not go along with the program then (as the govt), we will force them to comply!... after all it is for their own good!". This is the theme that I am seeing about to be played out.

Cars are not fuel efficient enought? No problem... we will just FORCE the automakers to build a more fuel efficient car. What... people are not buying those cars because they do not like them for some reason? No problem... we will make the import taxes on foreign cars so high that no one can possibly afford to buy other than what we tell them to.

This is exactly the sort of thing that the founding fathers tried to protect the country against when it was formed...

 

[REWahoo]

It appears this thread is drifting towards a purely political discussion which will result in the thread being closed. Please keep this in mind as you get back on a FIRE related topic.

 

[Bestwifeever]

I'd like to propose a czar czar. This individual would regulate creation of new czars and regulate pay of the current czars. After all, we have to monitor closely the ever-increasing czar population. Please spay/neuter your czar.

Uncontrolled expansion of the czar supply can lead to hyperinflation of czars. And if there is anything I fear more than the current czars, it is mounds upon mounds of worthless czars in the future.

So funny, Fuego.

 

[Gumby]

Yup.... that is about the way I see it. Like I have said before.... it is only a matter of time until you start seeing the govt begin to say things like... "You will not be allowed to quit.... for the good of the country you will be forced to (fill in the blank).... and so on..."

The belief in a utopian like society must be abandoned if we are to survive. That is what is really driving most of this nonsense. The prevailing wisdom (if you want to call it that), is that "if only all the people would do XYZ, then everything would be great for everyone..." And then comes the inevitable... "Well if there are some people that will not go along with the program then (as the govt), we will force them to comply!... after all it is for their own good!". This is the theme that I am seeing about to be played out.

Cars are not fuel efficient enought? No problem... we will just FORCE the automakers to build a more fuel efficient car. What... people are not buying those cars because they do not like them for some reason? No problem... we will make the import taxes on foreign cars so high that no one can possibly afford to buy other than what we tell them to.

This is exactly the sort of thing that the founding fathers tried to protect the country against when it was formed...

Your turntable appears to be non-functional.

 

[armor99]

Your turntable appears to be non-functional.

And it also appears that you are an admin.... so I must remain silent.... do not worry... I will be quiet now...

 

[ls99]

Things have a way of getting out of hand..... So...

YouTube - Bobby McFerrin - Don't Worry Be Happy

 

[FUEGO]

So in a nod to FIRE relating this thread before the overlords lock it, anyone in the financial sector worried about their incomes being capped? It seems like a few folks that post here make multiple hundreds of thousands of dollars in finance related careers. Those that are still employed, are you worried that your fast track to FIRE is about to have the brakes applied?

 

[ziggy29]

While I'd love to be earning enough to have that concern (I'd be FIREd already, I hope), unless it's a company that (a) takes taxpayer money AND (b) has a choice to refuse it, the feds have no business setting a "maximum wage."

 

[JPatrick]

And it also appears that you are an admin.... so I must remain silent.... do not worry... I will be quiet now...

I feel your pain my friend..

 

[SarahW]

As I understand it, not ALL executive compensation will be capped. Only the companies that are receiving govt bailout funds. Just sayin.

 

[target2019]

As I understand it, not ALL executive compensation will be capped. Only the companies that are receiving govt bailout funds. Just sayin.

You're reading beyond the headlines. What a curious thing to do!

 

[ERD50]

As I understand it, not ALL executive compensation will be capped. Only the companies that are receiving govt bailout funds. Just sayin.

Yes, but some of those banks that took TARP funds did not want them. They were coerced into taking them, and now they fit under these rules.

A slippery slope says I.

-ERD50

 

[HFWR]

I saw the following article this morning...

Geithner: No caps on pay for corporate executives - Yahoo! Finance

Interestingly enough.... just an hour before I saw another article that said Obama was going to seek a limit of 750k max for executives. I guess someone told him that would not go over too well.

I would love to know though.... where exactly in the constitution does the Pres or some Czar appointee who is not elected by anyone, have the power to start tinkering with someone's pay? Where is the Supreme Court here? Will no one make a consitutional challenge on this one?

If the govt has the right to set a private companies executive pay, then they also have the right to set anyone's pay that they choose. It can be argued whether exec pay is fair or outrageous, etc. But I would think it could not be argued that legally this govt move is illegal, and without precedent. I just want to hear the Supreme Court try to justify this one.

Does using the word "fascism" invoke Godwin's Law?

I think the Supremes can't just willy-nilly decide that something is unconstitutional. Someone must challenge it in court first...

I'd like to propose a czar czar. This individual would regulate creation of new czars and regulate pay of the current czars. After all, we have to monitor closely the ever-increasing czar population. Please spay/neuter your czar.

Uncontrolled expansion of the czar supply can lead to hyperinflation of czars. And if there is anything I fear more than the current czars, it is mounds upon mounds of worthless czars in the future.

This is bi-czar...

It appears this thread is drifting towards a purely political discussion which will result in the thread being closed. Please keep this in mind as you get back on a FIRE related topic.

Your turntable appears to be non-functional.

No, it's the record that's broken...

 

[FUEGO]

This is bi-czar...

I've heard that is illegal in 43 out of the 48 lower states.

 

[Sarah in SC]

So in a nod to FIRE relating this thread before the overlords lock it, anyone in the financial sector worried about their incomes being capped? It seems like a few folks that post here make multiple hundreds of thousands of dollars in finance related careers. Those that are still employed, are you worried that your fast track to FIRE is about to have the brakes applied?

I don't know of folks worried about caps, but I work mostly with private money managers that don't have any affiliation to the TARP banks. These folks are paid a percentage of assets under management.

Some of the high flyers on here might know more, but in the so-called boutique world, this isn't getting a lot of play. And since I personally have not been making multiple hundreds of thousands of dollars in my finance related career, I am pretty safe that my plan is still functioning.


I do like the idea of a czar czar, though.

 

[FUEGO]

Some of the high flyers on here might know more, but in the so-called boutique world, this isn't getting a lot of play. And since I personally have not been making multiple hundreds of thousands of dollars in my finance related career, I am pretty safe that my plan is still functioning.

I haven't heard any grumblings from DW or any of her I-bank coworkers, but they also don't get paid anywhere near the level that would interest the czar. I don't even think their boss's boss gets paid that much. Maybe the boss's boss's boss's boss's boss. But then again they haven't taken TARP money and they are actually solvent and one of the best capitalized banks in the nation (maybe world).

 

[MichaelB]

I think some of the people posting in this thread don''t know what fascism is...

I'd like to propose a czar czar. This individual would regulate creation of new czars and regulate pay of the current czars. After all, we have to monitor closely the ever-increasing czar population. Please spay/neuter your czar.

Uncontrolled expansion of the czar supply can lead to hyperinflation of czars. And if there is anything I fear more than the current czars, it is mounds upon mounds of worthless czars in the future.

Based on some posts, perhaps the thread should be retitled "One step closer to Czarism"

 

[FinanceDude]

Are these czars new Cabinet positions, or standalone appointments that are outside the Cabinet??

 

[Independent]

So, does anyone think that it's time to shift Asset Allocations away from US-based stocks?

The point of the OP (I think) is that gov't meddling in profit-seeking firms will decrease the profitability of those firms. If this is true, US stocks are less desirable, while bonds and foreign stocks are more attractive. Hence, people who feel strongly enough about this should be changing their personal AA. Is anybody moving?

(I have a semi-relevant story from 1980, but I'll postpone it.)