Wednesday, October 22, 2008

Proto-communist to the Fore

Long serving liberal Democrat Barney Frank (D-Ma.), chairman of the House Financial Services Committee, is feeling his oats, calling for a freeze on Wall Street bonuses according to a Bloomberg report.

"There should be a moratorium on bonuses,'' Frank, a Massachusetts Democrat, told reporters yesterday in Washington. "They have a negative incentive effect because they are the ones that say if you take a risk and it pays off you get a big bonus,'' and if it causes losses "you don't lose anything.''

This is a good idea if:
1. you want to encourage a massive brain hemorrhage of talent from US banks to less regulated, possibly foreign entities
2. you think that folks work 80-120 hour weeks regularly on Wall Street do it for the base salary
3. you want to rupture the economy of the New York Metropolitan area which generate a lot of revenue from Wall Street bonuses
4. you want to thoroughly nationalize the banking system

By the way, Barney, if you take a risk and it DOESN'T pay off, you generally LOSE YOUR JOB.

Not a prospect, clearly, that the beloved Representative considers remotely likely.

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