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The Fatter the Cat, the Louder the Howl


By Mish   Follow   Mon, 4 Mar 2013, 5:40am PST   372 views   7 comments
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The Fatter the Cat, the Louder the Howl
http://globaleconomicanalysis.blogspot.com/2013/03/the-fatter-cat-louder-howl.html
Mish

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Ceffer   Mon, 4 Mar 2013, 6:31am PST   Share   Quote   Permalink   Like (3)   Dislike     Comment 1

Switzerland will be an interesting laboratory to test the concept that fat cat executives are non-fungible brain bug pashas who have such unique talents that require their extortionate salaries.

My hunch is that they are highly fungible and that there are plenty of talented, motivated individuals to take their place just fine.

The extortionate salaries and self dealing obviously have not lead to greater social responsibility, ethics, or society positive or economy positive results.

ducsingle5313   Mon, 4 Mar 2013, 12:15pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 2

I am not a fat cat executive, but I frequent meetings where such persons are in attendance.

Generally speaking, these folks are not distinguished by their intelligence and/or business savvy so much as their boardroom buddies and the legion of folks who fawn over them because they want to join the same club. In some particular instances, it is highly disturbing to see how much $$$ sub-par executives have been able to suck out of a public company.

The big institutional investors have really screwed up by not demanding better corporate governance over the past decade or so. And sadly, if that hasn't happened yet, it will probably never happen.

justme   Mon, 4 Mar 2013, 12:35pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 3

Mish claims the following:


---------------------------------------------------------------------
Is Executive Pay a Problem?

Before finding solutions, we must first understand the problem. Is executive pay a problem?

The answer (that too few see) is executive pay is a "symptom of a problem" not the "real" problem.

Three Real Problems

Fractional reserve lending
Central bank "too big to fail" policies
Government spending out of control

Want to rein in excesses at corporations? Then fix the real problems and the executive pay problem will mostly take care of itself.
----------------------------------------------------------------------

WTF? Government spending? The mechanism for the fat cat salary bubble is crony capitalism, plain and simple. It has nothing to do with government spending, except for a few CEO positions at the military contractors.

Fractional reserve lending? Yeah, it causes all kinds of asset inflation, but it takes crony capitalism to steer the inflation into CEO salaries and stock options/awards.

TBTF? Well, TBTF has _preserved_ the fat cat salaries caused by crony capitalism, but it did not *cause* them. Crony capitalism did.

And, yeah, executive pay IS a problem, in and by itself.

Vicente   Mon, 4 Mar 2013, 1:54pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 4

justme says

And, yeah, executive pay IS a problem, in and by itself.

Fuckin A Bubba!

Vaticanus   Mon, 4 Mar 2013, 2:19pm PST   Share   Quote   Permalink   Like   Dislike     Comment 5

John Bailo says

The sad part is that we, ultimately, are the ones funding this perpetual motion machine. Our 401ks, IRAs and pension funds are the base that these guys "leverage" and leave us with IPOs and other stocks 1/3 to 1/2 off their highs.

Exactly, investing in their crime syndicate is enabling them. Cash out and invest locally, that will enable us to kill the beast and fund our own communities.
Great point John

Dan8267   Mon, 4 Mar 2013, 11:55pm PST   Share   Quote   Permalink   Like   Dislike     Comment 6

Two million views, a third from me.

Dan8267   Tue, 5 Mar 2013, 12:41am PST   Share   Quote   Permalink   Like   Dislike     Comment 7

donjumpsuit says

Use 99% to gain resources.

Use resources to hide and hoard more resources.

Obfuscate.

Sad, but true.

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