Stocks fall as Obama blasts bonuses [Bush's Fault]

Market Watch ^ | January 29, 2009

[Oldeconomybuyer]

NEW YORK (MarketWatch) -- U.S. financial stocks ended near their session lows after President Obama Thursday blasted Wall Street bonuses revealed yesterday as "shameful" and Vice President Biden suggested the government may try to claw back some of the money.

New York's Comptroller Joseph DiNapoli reported late Wednesday that despite huge losses, bank failures and layoffs, Wall Street firms still managed to pay out $18.4 billion in bonuses.

"It's the height of irresponsibility. It is shameful," the President said.

"There will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time."

[Oldeconomybuyer]

When is "the time for them to make profits"?

[pgyanke]

Folks, this is populism, pure and simple. I agree that those who steer the ship need to take it hard for steering the ship into the rocks. The CEOs of these companies (and other executive-types) do not deserve bonuses for their performance.

However, most of the bonuses on Wall Street are sales bonuses. They are a contractual arrangement agreed upon at the beginning of the sales year and part of general compensation. If an associate reaches these milestones, he earns X% in a bonus. It’s an incentive to produce and a retention tool to ensure companies don’t lose their best talent.

[Dallas59]

Yet Obama's stand also came just one day after he surrounded himself with well-paid chief executives at the White House. He had pulled in those business leaders and hailed them for being on the "front lines in seeing the enormous problems in our economy right now."

[popdonnelly]

Why is it shameful to get a bonus? As I recall, many Federal employees get end-of-year bonuses. I don’t consider 14 billion spread across the whole country shameful. One trillion in money to to Democrat constituencies is shameful.

[momincombatboots]

When Obama is able to turn his thermometer up for comfort, and only then. O wait. I love Biden though “ suggested the government may try to claw back some of the money.” Now that made me giggle. I think Madoff could help Biden out in that department.

[Neoliberalnot]

They are only shameful because Hussein doesn’t own them. I never realized they made idiots like zero.

[popdonnelly]

“Folks, this is populism, pure and simple.”

In Obama’s case, it’s socialism. Why is he railing against private bonuses? It’s not his money.

[bigbob]

All this talk of “bonuses” has no place. These folks need to understand, they’re in Government Service now.

[Wolfstar]

Why did you tack on “Bush’s fault” to the headline? There is nothing in the short article that alludes to President Bush. Isn’t it time to retire that, by now, very, very tired cliche?

[Netizen]

New York's Comptroller Joseph DiNapoli reported late Wednesday that despite huge losses, bank failures and layoffs, Wall Street firms still managed to pay out $18.4 billion in bonuses. "It's the height of irresponsibility. It is shameful," the President said. "There will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time."

I hope he and Congress remember that when they try to give themselves raises.

[colorado tanker]

For a lot of these people their regular salary is quite low, by the standards of their industry. Most of their compensation is in so-called "bonus." So, it's not like they're getting an award for poor performance.

This is just scoring cheap political points.

[Williams]

They collectively spent 18 billion of their companys’ money, whereas Obama is spending 900 billion of our money!

[ArrogantBustard]

They're stoking up Marxist class envy and hatred.

That has been tried many times, over the years and around the world.

It always ends badly.

[Names Ash Housewares]

Where was Obama’s outcry of shame when congress votes itself a payraise and adds themselves benefits?

[colorado tanker]

I wonder if any of those masters of the universe are regretting backing Barry for prez?

[screaminsunshine]

No stocks in socialism.

[prophetic]

Obama is more likely thinking “Regardless of your years of studies and hard work building up your company, you don't deserve to be paid ANY sort of bonuses. It's the Government money after all and I say I will take it from you as taxes and give it to more deserving people. E.g. Section 8 residents, illegal aliens, junkies who cannot get work, and of course my core constituents who tirelessly worked on my ACORN election campaign”

/sarcasm off?? (we hope!!)

[longtermmemmory]

This is to depress or cap wages.

Obama wants these people to be government desk jockeys for 1/10th the salary. government can’t compete so obama seeks to destroy free market compensation.

it is left wing jelousy of capitalists.

how dare you have a nice car, nice house, nice life.

you must be miserable and cold like the other comrade democrats.

[ClearCase_guy]

I would think that a beautiful chart could be created, showing Obama's effect on the economy:

June - Obama is the likely Dem nominee -- stocks begin steeper decline
Sept -- Obama looks like he will win in Nov -- stock decline picks up speed
Nov -- Obama wins -- layoffs start in earnest
Jan -- Obama is inaugurated -- layoffs pick up speed
late Jan -- Obama criticizes bonuses -- stocks fall some more

I't s clearly all Bush's fault.

[RightResponse]

Why did you tack on “Bush’s fault” to the headline? There is nothing in the short article that alludes to President Bush. Isn’t it time to retire that, by now, very, very tired cliche?

I totally agree! This is a new era (change, sic) After all, every damn thing that happens from here on is Obamma's fault!!!