Why I am so Angry!

"We need to punish those "greedy" Ceo's at those financial institutions!" "Down with Greed! and the high salaries of CEO's!" "To %$*@ with those rotten, rich, greedy Sons of $&#*$&@!" Ok the last couple phrases are used on far left websites but that is not what has me angry. It is hearing Bill O'reilly, Political Analyst Dick Morris, and of course Presidential Candidate John McCain condemning the same people. Let me put in perspective what they are saying in essence. "I have the knowledge and understanding of this 13 trillion dollar economy to know exactly what you should be paid for being the CEO of a massive financial institution." "I know better and by God you do not deserve what you are getting paid!" How conceded can someone be to believe they truly know this information. The problem I have recently is that it is conservatives like the men I mentioned above doing the complaining. Why are they complaining? Because it makes the American Ignorant Citizen feel good that someone is fussing at those rich Entrepreneurs!

Put yourself in this situation. Your boss tells you that you can come to work late, make bad decisions, and not work that hard and you will still make your current salary and keep your job. Or you are a manager of a specific branch of a very large company and the head of that company comes to you and says whatever decisions you make, if you win that is great, if you lose money in the decision, don't worry we will give your branch the profits from other branches to offset it. Oh by the way your job is guaranteed. How would you work? Would you work extra hard? Would you think twice before making decisions? No. Well that is what the government has done. It has guaranteed bailouts for companies that make bad decisions on loans. That means you win whether those loans are paid back or not. Thus there is no risk in decision making and no cost in making the wrong decision. How can you blame a CEO from running a company that gives loans to almost anyone when that is the guarantee? I would do it that way. Besides, these politicians that are calling these guys names are the same politicians that have pressured those CEO's and institutions into giving risky loans to risky borrowers for the sake of "Social Reconstruction." Don't get me started on the laws that do this for the sake of helping the needy, poor, minority, and other people who would not get a loan in a true free market.

In recent blogs I have covered the reasons for so many bad loans being made. I will not explain all that over again there. It is the fact that so many people are so mad at the wrong people that has me so angry! It shows the ignorance of economics and the current situation that has me so angry.

These Greedy people are loved when those companies make a lot of money and employ tons of people and allow millions of people to have loans at great rates. But when times get hard we hate them. If your wondering if these CEO's deserve this much money then go back and read my columns on "Why CEO's Make So Much Money." I think it is a three part series and it will help you understand. If the market calls for millions to be paid and these Multi-Billion dollar institutions need someone that makes multi-billion dollar decisions it might be worth paying them multi-millions to get a good CEO. Even if there is a risk in doing so. Most of my readers are athletes and probably like the Tennessee Vols. If Coach Fulmer was to be replaced do you think a proven Coordinator looking for a head coaching position would take the job if Athletic Director Hamilton said if you win 10 games we will pay you 2 million and give you an extension. If you win 9 or less then you have not done what we want and thus you will be paid nothing. Would anyone take that job that was a pretty good coach? No! For one, there would be far better offers somewhere else. The risk of no pay would not be worth it. Thus you have to guarantee these guys some money. Besides, if every CEO in the world gave back all their salaries to help pay for the losses the economy during this housing and financial crisis, it would pay for less than 1% of it. SO POLITICIANS, TAKE CARE OF THE OTHER 99% OF THE PROBLEM BEFORE TALKING ABOUT THE 1% YOU GREEDY POLITICAL MORONS!

If you were mad or are still mad about the current situation and blame it on the free market and the lack of regulation please comment on this blog entry. I would love to hear your thoughts.