Posted on 07/13/2014 9:29:08 AM PDT by Lorianne
The ex-CEO of CalPERS, Fred Buenrostro, has just pleaded guilty to accepting doucers, cash bribes and fees for placing investment business with a specific firm. The economic point that this helps us elucidate is why bankers and fund managers make such vast incomes normally. It’s a concept called “efficiency wages”. Essentially, when stripped right down, if people are handling or responsible for a large amount of money then pay them very well. So that it’s not actually worth their trying to do anything naughty, the risk of losing that high income is greater than what they can gain by being naughty.
(Excerpt) Read more at forbes.com ...
The penalty for this guy should be a minimum 15 years in a regular state prison.
What bull sh*t...It's human nature to take more at any opportunity and risk it all for more...It's never enough for crooks. Of course CalPERS and those in government know this.
Like the Bankers, CEO's and felons running Wall Street who were making $25,000 per day...It was not enough, so many started taking that much an hour....All on the backs of middle America...Then their insider co-conspirators in government bailed them out after burying half of middle America.
I didn’t read this whole piece but high pay won’t deter a thief. I remember the woman who worked at a school, she was busted for stealing the candy sale money. Does anyone think that was enough to change her lifestyle?
In other words, bribe the banksters not to steal?
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