Wednesday, February 04, 2009

Money Talks: An Addendum.

FILE UNDER: Words/A Moment of Clarity/Oh Word?/One Pure Thought.



"...This week, American companies announced somewhere around 65,000 layoffs. Caterpillar, Kodak, Home Depot, I.B.M., even mighty Microsoft: they are all cutting jobs. Everywhere in the United States, people are feeling the pain of this deepening recession. Even those with jobs worry about their futures. Their 401(k) plans have been decimated. They are frightened and angry.

Which is why Wall Street should not be surprised that oversize bonuses and $50 million jets generate outrage — and tough rejoinders from the president. “It suggests the selfishness of people on Wall Street,” said Charles Elson, a corporate governance expert at the University of Delaware, who sounded pretty outraged himself. “Wall Street has yet to learn the lesson of what happened.” What happened, put simply, is that the people who thought of themselves as the smartest guys in the room — and were paid accordingly — weren’t so smart after all. They brought down the financial system. They lost so much money that only the government can save them. The scolding they got from the president this week suggests that they’re going to be paying a price — richly deserved, I might add — for a good long time..."

  • NEW YORK TIMES: It’s Not the Bonus Money. It’s the Principle.
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