Put a cap on your @$$

So President Obama has issued an edict from upon high. He has placed a cap on salaries for the most distressed financial institutions. That might sound great to the average wealth envy citizen, although I'm sure that they would think the $500k salary is still too excessive.

Let this soak in for a moment. Ordinarily, chief executives for this sector make $1 million on the low end of the spectrum. Couple that with bonuses and other incentives and the actual salary is closer to the tens of millions. They don't make that kind of money just because they look good in Armani. They are essentially responsible for hundreds of billions, if not trillions of dollars worth of transactions. Being able to manage this complex system of financing and uphold the institutions obligations can be worth the relatively low amount of compensation.

Tangent: People drive me nuts. Why has there always been an uproar about what people make? David Novak, CEO of Yum Brands, made close to $55 million last year. A big, fat who cares. Good for him. He oversees the huge conglomerate of KFC's, Pizza Hut's, Taco Bell's, and Long John Silver's worldwide. Think his job is easy? I think that the people who make a stink about income should focus their attention on professional athletes. Especially NBA players.

What kind of incentive is their for an institution that is distressed to lure an intelligent, capable, and qualified individual to turn things around? Being that we all own a stake in these banks now, because of the disgusting TARP fund, I would rather they spend some money on the front end in order to get everything moving in the right direction to profitability. What type of individual would accept that kind of compensation and subject themselves to the scrutiny of the Federal Government and the wealth-envy crowd? As if the government hasn't already caused enough of the problems to begin with. Fannie, Freddie, the Community Reinvestment Act, and Credit Default Swaps have one common characteristic; government intrusion.

Own up America. There are citizens out there that have no business stepping into a bank and applying for a mortgage. There is no such thing as the right to home ownership. The Declaration of Independence did not say that we have the unalienable right to life, liberty, the pursuit of happiness, a tidy little two-story colonial, and healthcare (just wanted to throw that last one in there for a future topic). Everyone has the potential to own that colonial, but rather than scrimp and save, some just choose to lavish themselves with the true necessities of life. Items such as cell phones, bling, flashy cars, legal/illegal drugs, or Snuggies for the whole neighborhood.

Not that there is anything wrong with pursuing those dreams of flashing that new grill with the word 'PIMP' encrusted with diamonds on the front. Just don't blame anyone else for your lack of initiative, misguided priorities, or lack of discipline. Newsflash: Everything comes at a price and money does not grow on trees. In order to get money, you need to earn the money. Suckling at the teet of government will not provide a quality life. In his inaugural address, Ronald Reagan said that "(i)n this present crisis, government is not the solution to our problem; government is the problem. The less meddling they do over the next four years, the better off we will be. The problem is convincing everyone else.

One piece of good news--Tom Daschle withdrew his appointment as Secretary of Health and Human Services yesterday. My last post must of shamed him into pulling the plug. So I guess this means that Tim Geithner will quit on Friday.