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For now, Washington trumps Wall Street excess
Reuters ^ | February 4, 2009 | By Andy Sullivan

Posted on 02/04/2009 1:57:49 PM PST by Oldeconomybuyer

WASHINGTON, Feb 4 (Reuters) - Call it the revenge of the bureaucrats.

High-flying Wall Street executives have had their wings clipped by government officials who earn less than many junior bond traders after President Barack Obama on Wednesday capped at $500,000 the salaries of executives whose companies take U.S. bailout money.

Obama and other Washington officials said the move was needed to keep the bailout palatable to ordinary Americans, but it also may have brought into the open long-simmering resentment among bureaucrats who have little sympathy for Wall Street's culture of lavish spending.

Wall Street workers often view their outsize paychecks as a reflection of their prowess at the trading desk in a business where compensation has been tied to performance for decades.

By contrast, personal austerity is a public virtue in Washington, where skilled employees on the public payroll typically earn less than they could in the private sector.

For many, the chance to influence the direction of the country outweighs the chance to earn additional income -- although many eventually leverage their experience into a lucrative lobbying career. [snip]

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: bailout; bho2009; democrats; economy; obama; paycap; socialism; tarp
Beware of big government.
1 posted on 02/04/2009 1:57:49 PM PST by Oldeconomybuyer
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To: Oldeconomybuyer

Well, I bet this puts a halt to more government crap sandwich bailouts faster than anything else could.


2 posted on 02/04/2009 1:58:51 PM PST by Tarpon (America's first principles, freedom, liberty, market economy and self-reliance will never fail.)
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To: Oldeconomybuyer

More like communists. That is what we have in DC and the White House.


3 posted on 02/04/2009 1:59:32 PM PST by screaminsunshine (f)
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To: Oldeconomybuyer

This Is COMMUNISM. The government has NO Right to tell anyone how much they should be paid.

America is Finished.


4 posted on 02/04/2009 2:08:51 PM PST by FFranco
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To: Oldeconomybuyer
I ultimatlely don't see this working, at least as the news presents it today.

Compensation at that level is done via actual legal contracts. There are highly detailed, complex contracts drawn up between all parties and the Board of Directors of these companies. They go into extravagant details about the amount of base pay, bonuses, stock options, perks, etc. that to a large degree depend on the performance of the individual.

I see no way whatsoever that President Barry can just abrogate the terms of these contracts. I think that if these execs go to court to have their contracts enforced as written, they win.

5 posted on 02/04/2009 2:09:59 PM PST by willgolfforfood
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To: Oldeconomybuyer
By contrast, personal austerity is a public virtue in Washington

Where's my "WTF!?" stamp.....
6 posted on 02/04/2009 2:12:27 PM PST by JamesP81 (I shall give their president the same respect they gave mine)
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To: willgolfforfood

Anyone who thinks salary caps are good should ask the Dalai Lama how much they deserve to earn. Anyone who thinks salary caps are part of the cure for our economic woes must believe salary caps were part of the cause. There is a special place in heaven for children and these poor souls.


7 posted on 02/04/2009 2:16:49 PM PST by csmusaret (Call any Congresscritter at 1-877-762-8762. Tell them what you think.)
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To: screaminsunshine

Did you just HEAR him???? Good Lord! The man is insane with his new-found power. I immediately sent off emails to McCain, Kyl, McConnell and Boehner to please stop this man! 2010 cannot come soon enough for me........ PLEASE Everyone... take a minute and start emailing all your representatives and CC the McConnell and Boehner with your emails.


8 posted on 02/04/2009 2:17:01 PM PST by Arizona Carolyn
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To: Arizona Carolyn

Who knows they may be joining the Communists.


9 posted on 02/04/2009 2:22:41 PM PST by screaminsunshine (f)
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To: screaminsunshine

Speaking of Communists, Did you see the beginning of Glenn Beck a few minutes ago? He had all his graphics set up in honor of our new government — our Communist government! Write your representatives.... this man is a power hungry goon.


10 posted on 02/04/2009 2:27:15 PM PST by Arizona Carolyn
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To: Arizona Carolyn

No but I like Beck. I am telling you Obama is a Communist. If we let them they will destroy us. The enemy is within the gates. The Republicans are joining in. Do not trust them.


11 posted on 02/04/2009 2:33:13 PM PST by screaminsunshine (f)
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To: screaminsunshine
"...I am telling you Obama is a Communist..."

I was thinking that the reason that so many Clintonites were appointed into this new administration is that, being highly insulated from Real America, The Obama has few qualified persons of his own experience.

12 posted on 02/04/2009 2:45:16 PM PST by Does so
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To: Does so

In my opinion our only hope is a new amendment repealing all Laws, Rules, Reulations and Treaties since 1960.


13 posted on 02/04/2009 2:47:04 PM PST by screaminsunshine (f)
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To: Oldeconomybuyer

Take the king’s coin, do the king’s bidding.


14 posted on 02/04/2009 2:47:34 PM PST by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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To: screaminsunshine

We need a hundred Glenn Beck’s to help get the attention of where Bambi is going here... we have to get activated and fast to save this country from being Putinized.


15 posted on 02/04/2009 3:01:44 PM PST by Arizona Carolyn
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To: Arizona Carolyn

DEFIANCE.


16 posted on 02/04/2009 3:04:07 PM PST by screaminsunshine (f)
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