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news
Joined: 14 Jul 2007
Posts: 0
Location: Greater Boston
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balor123
Joined: 08 Mar 2008
Posts: 1204
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 Posted: Tue Feb 09, 2010 3:06 pm GMT Post subject: |
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| How does a private company which doesn't need to be profitable make decisions on compensation? |
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Tue Feb 09, 2010 6:19 pm GMT Post subject: |
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Easily, they pay themselves whatever they want. They bought off all the people in power.
http://articles.latimes.com/2009/apr/04/business/fi-fannie4
from above article titled Fannie, Freddie plan $210 million in bonuses:
| Quote: | The maximum bonus for any employee will be $1.5 million, the regulator said. Freddie's bonuses are going to 80% of its employees, while Fannie's are going to 61%. Ninety-two Freddie employees will receive bonuses of $100,000 or more in 2009 and 121 Fannie employees will get bonuses of $100,000 or more.
Fannie Mae Chief Operating Officer Michael Williams is in line for a $1.3-million bonus, according to regulatory disclosures. |
The reason why nobody cares that this group is corrupt and inefficient is because, again, they have bought off the politicians and the press march lock step with them. Every time I am critical of the CRA, Fannie and Freddie and even though they are in conservatorship of the US Government paid for by taxpayers and China, you can see the goons coming out and attacking me. This is how the current crop of Democrats operate, they make rules that undermine an efficient marketplace to provide a temporary political solution and then we get creep. Creep in construction is having dimensional problems add up and add up until the overall is out of whack. For example, when the Democrats tried to help the poor in the 80's they invented Adjustable Rate Mortgages, or they deregulated to allow for them. This helped the poor for a few years, but eventually the market adjusted and prices went up because more people were bidding on houses than would have been under normal market conditions. These rules ended up hurting the poor eventually. College tuitions are the same thing, they kept throwing government money and subsidizing colleges so colleges just said thank you very much and kept hiking up their tuitions. Now Obama is offering MORE subsidizies for colleges instead of letting the natural market force the colleges to DROP their price tags. College tuitions were able to skyrocket alongside the housing bubble because colleges were forcing parents to tap into their home equity to pay for tuition. Now, the government is taking over the process of auditing the financial aid and are making the decisions as to how much one family or another pays. This is what Democrats want; government control where a politically appointed person can redistribute wealth from one family to the next where we have one class of the well connected and the other servant class.
In many cases a "Community Organizer" is really a "Poverty Pimp"
http://en.wikipedia.org/wiki/Poverty_pimp
Basically a poverty pimp is someone who gets rich or self promotes by pretending to help the poor but has no track record of every solving any problems for the poor. Tony Rezko was a poverty pimp. I believe when Deval Patrick took hundreds of thousands of dollars from Ameriquest, one of the worst predatory lenders who targetted the poor and minorities, he was acting like a poverty pimp.
The people at Fannie and Freddie are poverty pimps. Take Franklin Raines:
http://www.fool.com/investing/dividends-income/2008/09/10/the-people-responsible-for-fannie-mae-and-freddie-.aspx
from above:
| Quote: | Franklin Raines
Fannie Mae was always a political beast, but it reached its elbow-swinging heights during the time when former Clinton administration budget director Franklin Raines sat in the CEO chair. Under Raines' leadership, Fannie overstated earnings by a stunning $10.6 billion, all the while paying Raines and his senior management team massive bonuses.
It was under Raines' management that Fannie morphed from being a company in a sleepy business -- issuing debt to buy mortgages from lenders -- into a far more risky and exciting one: buying up mortgages and holding them, thus capturing the spread between its borrowing costs (which were lower than anyone's other than the federal government's) and the interest rate received. It was a great business, except that it had nothing to do with Fannie's charter. According to a May 2006 report from OFHEO, Raines became obsessed with keeping earnings per share as high as possible and motivated management to achieve that goal by setting up a bonus system that rewarded increasing earnings per share (EPS).
The thing is: Any company can hit an EPS number if it doesn't worry about little things like accounting rules, debt levels, and risk factors. All told, Raines pulled in some $90 million between 1998 and 2003, the majority from bonuses. And when OFHEO began to ask uncomfortable questions, Raines actively lobbied Congress to cut its funding. In April, Raines agreed to disburse $24 million for his role in the accounting "errors." |
These poverty pimps play the victim agressively and protect themselves to the sacred cows. They get people to defend them because they front as trying to help the poor when they are really trying to steal from the poor.
Ask yourself, would an old school Democrat who actually cared about the poor want casinos? Until Democrats purge the poverty pimps from their ranks, I will remain Independent.
Imagine that Fannie and Freddie are still paying out hundreds of millions in bonuses when many ought to be in jail alongside Bernie Madoff. The only way they are not held accountable is that the people who hold political power are protecting them and those that try to shed light on the truth are being attacked and vilified. One day, people will realize who really cared about the poor and who was fooling and cheating them under their noses and fronting as a Democrat and a Christian.
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Tue Feb 09, 2010 7:01 pm GMT Post subject: |
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http://capmag.com/article.asp?ID=923
from above:
| Quote: | THE POVERTY PIMPS' POEM
Let us celebrate the poor,
Let us hawk them door to door.
There's a market for their pain,
Votes and glory and money to gain.
Let us celebrate the poor.
Their ills, their sins, their faulty diction
Flavor our songs and spice our fiction.
Their hopes and struggles and agonies
Get us grants and consulting fees.
Celebrate thugs and clowns,
Give their ignorance all renown.
Celebrate what holds them down,
In our academic gowns.
Let us celebrate the poor.
by
Thomas Sowell |
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