Archive for the ‘Economic Stimulus’ Category

The True Cost of Government Bailouts

Tuesday, March 31st, 2009

The main justification for all the government bailouts seems to be that the economy cannot survive without them and, that if properly handled, the desired result can be achieved with minimal if any cost to the taxpayer.
The Example of the Resolution Trust Corporation (RTC)
Many use the Resolution Trust Corporation as an example and reference that, [...]

The AIG Bonuses: FreePassers Gone Wild!

Tuesday, March 17th, 2009

I have noted before that the FreePasser epidemic has permeated every aspect of our society. However, the recent disclosures of the use of government bailout money for bonuses at American International Group (AIG) astound even me. It turns out that the taxpayer bailout money was used to pay bonuses of about $450 million to a [...]

A Solution to the Financial Crisis: Require Insurance Before the Bailouts

Sunday, March 15th, 2009

There is a passionate discussion going on about the government bailout and its costs. Some say that there should be no bailout, and that the the taxpayer is being unfairly stuck with the cost. Some believe that the financial system should be allowed to operate without interference - that, ultimately, the free market will prevail. On the other [...]

A Question About the Economic Rescue Plans: Who Picks Up the Tab?

Monday, February 23rd, 2009

The government has announced plans to rescue the banking system, to stimulate the economy, and to prevent mortgage foreclosures. These programs have generated many questions regarding their implementation and efficacy. However, the really big question that no one in Washington, D.C. seems to be asking is, Who picks up the tab for the cost of all of these programs?
Bringing up [...]

The Obama Compensation Limits: FreePassers Not Allowed

Thursday, February 5th, 2009

President Obama announced that he wants to impose compensation limits on executives of companies that receive government financial rescue funds. His proposal includes the following provisions:

A $500,000 cash cap on annual compensation for senior executives
Requiring top executives at financial institutions to hold stock for several years before they cash out
Requiring nonbinding “say on pay” resolutions [...]

Trust in Banks and the Congressional Pig Roast: FreePassers in the Beltway

Tuesday, February 3rd, 2009

Although my last several posts have focused on FreePassers in corporate America and on Wall Street, we also find an abundant number of them in government, especially in Washington, D.C.
Trust the Banks: One of the Greatest Lies in History
When the original TARP (Troubled Asset Relief Program) legislation was first introduced it had few restrictions and was [...]