Saturday, October 24, 2009

Another nail in the capitalism coffin

President Obamas pay czar Kenneth Feinberg announced the United States government will interfere in the pay compensation structure among private companies. These are banks that accepted or were forced to accept TARP (Troubled Asset Recovery Plan) money.
Pay Czar Kenneth Feinberg appointed by President Obama, reports to Treasury Secretary Timothy Geithner. These banks that were in trouble were so because of government mandated and threatened actions. It was the government who ordered the banks to write bad mortgage loans to people who would not have otherwise received such loans. Because of their credit history or other financial reason would not have qualified. After years of writing these government forced bad loans the system collapsed, thus forcing the government to bail out these institutions that were in trouble because of Uncle Sam. Plus some banks refused TARP money, however were forced to accept it. Now the very government responsible for these bad loans now is telling these banks what their pay and compensation structure should be.

The Obama administration getting away with the above pay interference then decided to restrict the pay of any company in the USA they deemed to be taking risk or at risk. See The Washington Post article:

A business taking a risk is the essence of capitalism. Whenever a company adds a product or service to the market, they are taking a risk .This is an outright attack upon capitalism in the USA. Capitalism has just died, and a command economy has been resurrected out of the ashes of the failed Evil Empire (the Soviet Union). Welcome comrades to Obama and the Democratic Partys United Socialist States of America USSA! Can you cay, comrade. Remember it was President Obama who fired the CEO of General Motors. When has a president ever had a word on who would and would not be the CEO of an American corporation? The news media and the public were silent.

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