Notice how people both feel that they (a) deserve their bonus and (b) budget their fixed expenses and lifestyle as if they are going to get their bonus. Is there any wonder you see so many people not report problems or actively “race to the bottom” in terms of ethics?
— Mike Konczal (Roosevelt Institute), on Wall Street
Lately, I find myself trying to think of gentlemanly ways to say “I told you so” a lot. So I’m creating a new feature: the “ITYS Alert.” That way, I don’t have to say that cocky phrase, but you’ll know what’s coming. Trust me, I’m never happy to say ITYS because it’s always about bad things.
In the Washington Post, Steven Pearlstein opines over the growth of outrageous executive compensation, despite the weak economy:
The data from this spring’s proxy season is mostly in and it shows that after two years of decline, the average compensation for chief executives of the 500 largest U.S. corporations is on the rise again. According to Governance Metrics International, the average “total realized compensation”…was just under $12 million in 2010, up 18 percent from 2009…
This wasn’t supposed to happen. Continue reading “ITYS Alert: Executive Compensation”
If you play this strategy [i.e. mispricing risk], you can expect…a bunch of years of multi-million returns, followed by an eventual unceremonious firing (if that) and life in the Hamptons. If you follow an efficient markets strategy, you can expect the going rate of return on the diversified market [portfolio]. Which sounds better?
— Tyler Cowen (George Mason University)
If the alternative to getting rich and then going bust was to never get rich in the first place, then the alternative looks bad even without bailouts.
— Matthew Yglesias (Center for American Progress)