Should the bailout go for executive bonuses?

I think it's a funny question, because if we are talking about an executive that pulls a company out of its mess, secures the jobs of everyone in that company, and as a result contributes to the economy, I don't think anybody would argue that this executive would deserve a bonus. Sure, knock yourself out. But unless you are actually accomplishing something close to that, you don't even deserve your job as an executive in the first place, so a bonus is a moot point. Let's see some results, then you can talk about bonuses.

I examine the partial transcripts from mediamatters and that i could say you're no longer thoroughly ultimate approximately what Rush says. He quite reported that a number of those adult adult males get in basic terms those bonuses. if it extremely is the case, then the bonus would not signify fee above & previous earnings for a job nicely performed. The "bonus" IS the earnings. yet i'm no longer particular Rush is powerful on that. I maximum unquestionably would not take Rush's be conscious for it. those adult adult males could be paid & paid nicely or they won't get the reliable CEOs who can help pull the business corporation around. yet there could be a decrease whilst a business corporation is getting tax payer money. in the event that they do in comparison to that, then perchance they'll think of two times earlier getting on Uncle Sam's payroll.

You're looking for a simple answer to a complicated question. Banks and non-banks need to retain their most valuable personnel. Paying them retention bonuses, not performance bonuses, is necessary if you think your firm has a future. If not, then you don't and your best people will go elsewhere around the world, because the economy if global. They will then help your Swiss or Australian or Japanese competitors take market share away, which will reduce the value of your firm, make it harder for you to attract private capital, necessitate layoffs and asset sales in an unfavorable environment, reduce earnings and thus dividends and corporate expansion, and reduce the flow of funds (sales, excise and income taxes) into state, federal and municipal treasuries for an indeterminate amount of time.

Bernanke and Paulson, who it now appears took a rather large public hit for Geitner over the Lehman Brothers fiasco, have managed to stabilize the financial economy after they helped torch it. Credit markets have not normalized. Until that happens, and until some other things happen like the stabilization of real estate values, the economy cannot work its way out of this recession. Consumers need credit to purchase the goods and services that our economy produces. Businesses need demand for their goods and services to survive.

This is a symbiotic arrangement and both sides have to be dealt with or the result will be lopsided, i.e., banks with money to lend without creditworthy borrowers. Multiple approaches are being considered, and Obama will lock in on a number of them after January 20, 2009. But, as Erin Burnett pointed out this morning on CNBC, we have yet to find a solution to falling home values and foreclosures, which is where this problem originated and continues to persist.

I think Erin Burnett promised to discuss potential solutions to the real estate situation with guests on her show, and that could prove to be a series of valuable exchanges of ideas. However, I don't know when she plans to hold these interviews. I hope it's sooner rather than later.

P.S. I just wanted to add that maybe I'm wrong. Jim Cramer was on Hardball last night and told Mike Barnicle that he suspected that AIG and the other beneficiaries of federal bailout funds were paying out undeserved employee bonuses using the TARP money. I believe he suggested that "retention bonuses"were a subterfuge at best, at least at places like AIG.

To tell you the truth, I'm confused. I thought every single CEO would be doing the right thing with the TARP funds, including paying retention bonuses (not performance bonuses, which clearly aren't deserved in 2008 and should be clawed back if made) if that was necessary to the success of their business model. I find Cramer's suggestion that this is probably not the case extremely disturbing.

I just thought I should amend my answer. If TARP funds are being misused, whether through bonuses or other loophole shenanigans, then I hope there is a catchall provision in the legislation that permits the Treasury Secretary to rectify the situation with extreme prejudice.

I just read that article. This is just getting to be total crap! I think it said 1.6 billion dollars of our taxpayer money for this so called 'bailout' is going to execs for bonuses?!?! This is right after Congress decided to give itself a raise?? What the heck is going on here!!! American people are losing their jobs, their homes, they are barely able to get by! Sorry for the rant, but I am getting madder everyday!!

There shouldn't have been any bailouts in the first place.. The last thing we need to do, is to reward the people who were responsible for tearing things apart.

No because the bailout should not have happened.

The Federal Reserve was built to be "the lender of last resort" so they should have lent the money and assumed the risk not the taxpayer. Why did we create them if they cannot perform the basic duties that we commissioned them to do. They take our money, inflate and depress our dollar, and give us the finger when their mess lands in our laps.

Sure, why not! The senators are voting for raises while Americans lose their jobs...and there has been no oversight or transparency re: the bailout ...so print more money and give it to them...it's all craziness now anyway.

Absolutely NOT!

They should start earning their pay just like everyone else. And an end to golden parachutes is a must.

Either do the job you are overly paid to do, or get fired without compensation.

The high-life must end NOW!

If there is anything left after executive bonuses, it should be used for free lunches.

You had to ask that? Hell no they shouldn't be given reward money for running Wall Street into the ground!