Robert Reich & Eliot Spitzer Talk Jobs & Economy

Robert Reich joins Ed Shultz to talk about the economy and job creation and then Eliot Spitzer talks to Ed about the bank bailout and what consumers can do to show their disapproval of their taking the money and putting it in the CEO's pockets.

From Daily Markets.com (http://www.dailymarkets.com/economy/2009/01/03/suggestion-for-bank-ceo-bonuses/­) In recent weeks, the news has discussed at length the $16.0 billion that bank CEOs received last year and how institutions, which received bailout funds, are not accounting for their use.

How a CEO navigates through tough times is more indicative of their capabilities than good times. By extension, we could say that in tough times a CEOs skills are of even greater value (perhaps 5 or more times) to the survival of a financial entity. However, where we differ, in respect to bonus schemes, is the asset class they should receive.

Currently, foreclosures and write-offs are expected to remain extremely elevated. If CEOs had a real stake in reworking these bad loans (non-cash or stock bonuses), perhaps their financial entities would actually be able to stem the tide of foreclosures. If half the potential losses could be reworked, the chances for the number of foreclosures would decrease with time.

The result — a reduction to the loss the borrower must digest (and the elimination of the hit to their credit score), a reduction to the loss of principal for the lending institution, the retention of shareholders equity, and ultimately the price of the shares.

If the Board of Director would take this approach, with respect to CEOs and upper management bonus schemes, it would go a long way in enhancing the publics view of these institutions.

Category:

News & Politics

Tags:

• Robert Reich
• Eliot Spitzer
• Ed Shultz
• job creation
• economy
• bank ceo bonuses
• daily market

[meccaturbo]

@hoover20076 Amen dude. Fuck the multinationals and fuck the Chinese.

[hoover20076]

debt is slavery- if you can't buy it without borrowing, then you don't need it! stick it to the multinationals by NOT BUYING THEIR SH*T! BUY LOCAL, MADE IN THE USA. 

[GodChristLord]

Boy, I hope President Obama does listen from time to time to what Robert Reich has to say.

[steverouse56]

At least Spitzer did not fuck up the economy.

[glocker8888]

Nobody cares what the filthy pervert Spitzer has to say.