Slash and Tax

So we are going after the paychecks of big firms that received tax payer assistance. I think that is addressing the symptom, not the cause. We should have busted up these firms, not bail them out then come at them later. This is populist pandering. This is a move that the banks will scream about, but they know that in the long run this is a sign that things won't change, that they can keep betting like they did to get in this mess and get bailed out when their bets go bad in the future. Of course, since Goldman already paid back it's assistance, it won't get pay cuts. The firms that are getting the paycuts have no real hope of recovery. This is a bait and switch move by the Administration. The real players (Goldman) have already left the coop. Forbes.com has some thoughts on how to address the crazy pay.

Mr. Volker is advocating the breaking up of the big banks.

I'm a new fan of Bruce Bartlett. You should be too.