You know I heard on the news that people were questioning President Obama's thinking the other day, when he said, he wanted to cap CEO pays. Now, I do have to say I also agree with the naysayers, when they say that the Government have no business getting into regulating how much private business pays anyone, including the CEO's. However, when the Government is handing out billions of dollars, it does have a right to say how, those that accept it, spend it. That includes putting a cap on the CEO's, including their bonuses.
Donald Trump, probably said it best on his blog:
Last night I was on the air with Larry King who always has incisive questions. He asked me if Obama was right or wrong to go after these executives with salary caps--and I said he’s absolutely right. Billions of dollars are being given to banks, and once you start using taxpayer money, it’s a whole new ball game.
It’s not a game I’m enjoying watching. The banks are trying to shore up their balance sheets. They’re supposed to be loaning out that money and they’re using it for other purposes, so it is a real mess.
It's important to remember that this is a worldwide problem. Mr. Trump even mentioned this in his blog post. Despite those that want to blame the good ole USA, every country is experiencing this problem. Had we listened to John McCain and others in the Congress two years ago, perhaps it wouldn't be as bad for us, at least in this country, but we chose to listen to Barney Frank and his ilk, that told us everything was OK. We now know, that they were wrong about Fannie and Freddie. McCain was right when he warned us two years ago we needed to do something about these now bankrupt government backed business and their frivolous purchasing of bad loans that they would never collect on.
The concept of bailouts is a two-edged sword. If they didn’t do the bailout, we would be in depression No. 2, and maybe it would be just as big as depression No. 1, so they really had to do something. We don’t really know if it’s going to work for quite some time. If it’s really wrong--and it could be wrong--we’re going to really have a mess in two years.
We are in a situation that is trial and error. We’ve never dealt with this before. But I think Obama is doing the right thing and all of us must remain alert to what is happening.
- Donald Trump
I can tell you for a fact that the bailouts will fail. I don't know that we will find out in two-years, but we will eventually find out. The thing is we cannot continue falsely inflating the economy with money we don't have. To get the economy going again, we have to let it fail. Then learn to follow our grandmothers advice, "If you can't afford it, you can't buy it." The idea, despite what economists that lie to us about how great credit is; we will be better off, both personally and economically if we learn to save up for our purchases and not think that we have to have everything under the sun. That goes for our personal budget and our national budget (for any country). I don't know what is so hard to understand about that, it is just simple math. But then, if our Governments were doing simple math maybe they would see their stupidity. But, perhaps that is asking to much.
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go ahead share your thoughts with me now.
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