And the Insanity Continues…

We have a new entrant in the competition for most insane and economically devastating event perpetuated by the Government in what is a Government-created, global economic disaster.

A quick review of a few of the other nominees includes:

• Banning shortselling
• Blaming speculators for the Federal Reserve created oil bubble
• Forcing Fannie and Freddie, while on the verge of collapse, to increase lending in an absurd and suicidal attempt to prop up housing
• Pressuring banks to increase lending in an environment that any sane, profit-seeking entity would be tightening lending standards
• Believing that Stimulus Checks would stop the economic collapse

Christopher Dodd’s last minute addition to the “Stimulus” Bill of retroactive compensation limits on bailout recipients is truly unconscionable and will have devastating effects. This proposal is immoral, unconstitutional, smacks of command economy aspirations and should be a stark warning to every entity beholding to the Federal Government.

Would these companies have accepted money from the Treasury if they knew that Congress could arbitrarily change the terms of the agreement and dictate to recipients how they ran their businesses? Why would any company going forward take a dime from the U.S. government if Congress can arbitrarily change the terms of that arrangement and burden the recipient with any debilitating restriction it feels is politically expedient? Only failed entities, that should cease to exist, will be willing to accept such partial-nationalization.

This is a warning to every State in line to receive Stimulus or Federal assistance. Why couldn’t the government 9 months from now order each state to close its coal power plants, cease off-shore drilling, provide universal healthcare or any other preposterous and economically disastrous policy.

What about all those people who received Stimulus Checks last year. Why can’t the government place unreasonable burdens on those recipients? Why not mandate that each buy an electric car, join a union or register as Democrats? Think of all the people receiving foreclosure assistance. I recommend that Senator Dodd confiscate/nationalize each and every one of these homes as a lesson to these sycophants.

Senator Dodd demonstrates a complete lack of understanding of how our finance industry functions and how executives are compensated. He also exhibits a fantastical disconnection with reality. Dodd’s proposal will accomplish nothing positive. Companies will figure out ways around the limits. Should the government prevent this and until Congress freezes all pay and locks employees into their present positions, (which once seemed far fetched) good executives will simply depart their jobs for private sector destinations not beholding to the Government.