The Economic Crisis, the Congress, and Wall Street

[Matt Brookman]

Right now I am outraged at the stupidity of the people that are representing us. The House of Representatives is trying to pass a bill that would tax 90% of all bonuses that employees receive that work at companies who have received bailout money. Keep in mind that these bonuses are already taxed. If a man gets a $100,000 bonus, after the House's proposed bill and state and federal taxes, that man could owe about $110,000 in taxes.

Right now I can imagine that people don't really care, but I do not think the recent treatment of Wall Street by the president and the media is very fair. They are being made a scapegoat for a problem that is as much fault the government's as it is Wall Street's. Keep in mind also that not everyone on Wall Street is a criminal and that a great majority have done nothing wrong but are still suffering the consequences brought on by certain divisions of their companies.

Of course I am biased in this situation because I have family that works on Wall Street, but even so I think Wall Street needs to get their side of the story out and that everyone's opinions should not mirror that of the media and the government.

PS- Bonuses are not something to go crazy over. Many employees of Wall Street companies earn a small base salary and then earn most of their money through their bonus, which is dependent on how well they work.

[Matt Brookman]

bump... anyone gonna respond?

[Jim MacDougal]

It's a mater of whether the Gov. should subsidize risk, isn't it? No one goes to Work on Wall Street for the regular salary, they hope to make a killing when...well, when they make a killing. And if that doesn't happen, then are taxpayers expected to cover you bad choices?
Also, what are the bonuses for? The company needs a bail out! If your personal accounts are in the black and you have mitigated the company's loses I can see it. But how can everyone Earn bonuses and the company still need a bail out?

This is the public perception, and this is a complicated issue. I'm prepared to be enlightened.

[Matt Brookman]

I understand where you're coming from, but not every division needs a bailout. A great majority of people in the company have to sacrifice their salaries because of mistakes a small percentage of people made.

[Jim MacDougal]

I'm sorry to leave you hanging for so long, but it' not easy to anser this. The reality is, people are angry, and with every luxury enjoyed by members of companies in bail-out we grow more angry. OK, specific example, the bonuses paid to AIG employees amounts to about .2% of the bail-out money. But that anyone at a company in bail-out is getting a bonus is percieved as a disassociation from reality. We cannot resolve this with our own expirience with reality. I have been in credit counciling - it wasn't any fun. I have been a student in a district that went on austerity - it wasn't any fun.
And as we percieve reality, being part of a company recieving bail-out funds from the government is not supposed to be any fun. Bonuses make us angry.
Be strong. Because of the bail-out the company will survive, and it'll need good people. As you describe it that should include your Dad. He'll survive the shitheads around him.

[name]

Well, from what I just read in the news, this bill is losing steam. Yesterday the House of Rep. began debating a new bill called "Pay for Performance" which would "prohibit unreasonable and excessive compensation and compensation not based on performance standards" at financial firms that have received government bailout money. This makes good sense and seems especially fair for the share holders.

What is your opinion of this new proposed legislation?

[Ashley Potter]

i'm not really sure what to make of it. I was never a big fan of big firms to begin with. I agree with CNN: "AIG was not too big to fail. It was too big to exist." They did get into a lot of experimental stuff, and the government let them do it, but that's just how capitalism works. It's not perfect, but it's successful. Even Nancy Pelosi can't argue with that.

now, i think our representatives are just trying to show big business that they mean business, because us voters are mad, and in order to keep their jobs, out reps are going to need to be mad and do some backtracking. i agree that companies are being mistreated, but it's a part of the balancing process... the utter carelessness of the gov to regulate business practices (not regulate business) is swinging to the oppositte end of the spectrum. some call it socialism, but I just thing that things are going to get much more extreme before they find a happy ideal medium. it just comes with being the hegemon.

TANGENT: I think the Hegemon has to be the most kicka$$ Pokemon of all! I mean, it has to be; It's the biggest. LOL Wanna know how I know I'm a nerd? I just made a political/pokemon joke.

[name]

lol, that was a good one actually :)