Finance Fatcats Live Large As Firms Crumble

It is one of the ironies of the subprime mortgage crisis that while millions of people stand to lose their homes because they can no longer afford to pay their mortgage, the people at the top of the financial institutions that wrote the loans or packaged the risky debt on Wall Street are still tucking themselves in at night, safe and sound inside some very ritzy real estate.

On Monday Lehman Brothers declared bankruptcy, and late Tuesday night AIG, the largest insurance firm in the world, was essentially taken over by the federal government in an effort, the government explained, to stave off further disruption to the economy.

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Comments

[DuPageDem]

I'd suggest the guillitine, but that's a bit foreign. How about some nice domestic rope, a sturdy tree and a rickety old kitchen chair? It's past time for a Second American Revolution.

[impatient]

I totally agree! I think republicans have felt they could rob and rob as long as they left the middle class only moderately miserable. But that misery has been around a long time. Now that we are seeing serious misery and the wealthy totally unaffected---it may be time for the lower and middle classes to say Enough,

I will be shopping for torches tonight.

[bujeeboo]

Who are these people? Contrary to the meme being peddled out there right now, I want names, I want them to take scalps and punish these people. Someone should create a deck of playing cards!

[AmandaRuth]

Playing Cards - That is a fabulous idea - Picture of a banking executive with his salary and bonus contrasted with the amount of our tax money he will be get, and then the amount it will cost per taxpayer. I would buy it. Someone get on this.

[research]

I'll buy one!

[Workman_Tarber]

Just read this--the myth is that to retain executive "talent " you have to pay them huge sums of money or they will bolt to the highest bidder. Actually for every idiot CEO there are at least 1000 wanna be idiot CEOs who will take executive jobs for 1/100 of the salary. If the government takes over these incompetently run institutions then executive salaries should be limited to a multiple of the lowest paid person in the organization.

[juggernaut1729]

"The goal of Capitalism is to consolidate the wealth to the fewest - Mission Accomplished."

Haha! It is really funny to hear Americans say this. Have you people ever visited the third world ? Even the poorest people in America are better off than atleast 90% of the people in countries like India and China.

[vippy]

You have not seen the many homeless in the streets of New York or San Francisco or every
large town in the US. Imagine we had bubonic plague right here in New Mexico a few years
back, something the world has not seen since the Middle Ages.

[research]

BS. I saw poor folks homeless in Boston.
Poor folks frozen to death. The Homeless die young all over the country.
http://www.metrokc.gov/health/hchn/2004-annual-report-HD.pdf 82 dead just in Seattle.
Hatred of poor people causes violence against the homeless:
http://www.nationalhomeless.org/publications/facts/hatecrimes.html
that's bad enough.

[research]

BS, The poorest people in America die on the streets from exposure.

[juggernaut1729]

http://www.heritage.org/Research/welfare/bg2064.cfm

Contrary to what liberals believe, the overwhelming majority of people below the poverty line are not poor by any reasonable standard.

[juggernaut1729]

How many Americans die on the streets from exposure every year?

The fact is that American kids who are poor enough to qualify for free lunch in schools have PS3s and Reebok shoes, something which most Chinese and Indian kids can't afford. Their parents have a car. Some have two or more. They have air conditioning. They have microwaves.

[Chavez08]

The goal of Capitalism is to consolidate the wealth to the fewest - Mission Accomplished.

McCain isn't ignorant when he claims the economy is "fundamentally strong", he means it. The "economy" he cares about is the economy that makes financiers kings and everyone else peasants. This is what Republicans have worked for since the 60s, the elimination of a "middle class" that they see as having far too much political and purchasing power.

Don't be fooled by the rhetoric about "incompetence" and "bad apples", this is a long awaited, carefully orchestrated national conversion to fascism that is working as planned and on schedule.

[Montanagramma]

They had to hurry to get this last phase, giving all taxpayer money to the fatcats. It's looking like they may just not be in charge long!! LOL But, no fear. If at some point in the future they are able to lie their way back into control, they can sell of the foreclosed houses they bought with our money. Big Bucks. I have heard a few commentators say it will take a long time to get them all sold. Probably planned better than any of us think.

[wagadog]

Why aren't these people being held personally responsible for the mismanagement of these companies, under Sarbanes-Oxley?

No, Not "people." MEN. As ABC noted, these executives with the golden parachutes are all men. Also, I should be specific about the companies ABC was discussing in their article.

So I stand corrected.

Why aren't these men being held personally responsible for the mismanagement of Lehman Bros, Fannie Mae and Freddie Mac -- under Sarbanes-Oxley?

And why doesn't ABC even raise that question?

[CaptainAsshole]

Doesn't Sarbanex-Oxley cover information retention?

[Montanagramma]

To quote Mr. M ~ they should "give it back!"

[juggernaut1729]

People seem to believe that voting for the democrats is somehow going to make this problem go away.

The fact is that both the republicans and the democrats are in bed with big business.... and why won't they be ? It is in their interest to make money and keep getting elected and the surest way of doing that is to accept the patronage of big business. Obama is not as bad as McCain, but that is only because McCain has been in the game longer.

Lawmakers pursue their self interest like everybody else. Obama is not an exception to this rule. He is a smart man. He knows which side his bread is buttered. Infact, he has been exceptionally quick in learning the ropes. Just ask Fannie Mae.

It does not matter who comes to power. We are on a one way street to (corporatist) socialism. Smart people realize this. They have learnt how to play the system and get rich. Try to do the same instead of pinning your hopes on Obama to change the system. That's not going to happen.

[RushLiberal]

C'mon now - these guys have EARN their pay and perks - 60 Million Dollar salary and including Perks is not too much for these guys to earn. Corporate Jets, Yachts, Villa's in Italy, Lobster Lunches and chauffeured limos is the LEAST we can do for these men.

The heads of Corporate America and TRUE Patriots and would Never think of harming the economy or the American People intentionally - These men are the Backbone of America - not you investors and after all - you invested with them willingly, it is not like they twisted you arms or something - you invested freely in their companies and 'THEY' will be the first to tell you to read your Prospectus where it states - that there is RISK in investing.

So get off their slimy backs - would you.

[CaptainAsshole]

lobster? how about Kobe steaks?

[Bettysdad]

These people are on welfare.

To be eligible for welfare the applicant has to show a minute amount of assets.

Seize everything these people and their families own including their socks and underwear.

I doubt anyone on HuffPo could receive welfare.

There's no reason these people should.

[AmandaRuth]

As I posted on another board, it is interesting that (non) wage growth, outsourcing and the lack of decently paying jobs is never talked about as a big part of the wall street/banking meltdown. What can you expect in a society were executives make 400% of what the average worker makes. Not to mention, gas being $1.40 a gallon during the Clinton years, and $4.00 a gallon now, which affects EVERYTHING. I guess having an investor economy doesn't work out so well when all the jobs are low paying non-union service sector jobs.

[kkuchenb]

You're right, and I wonder why no one much has talked about the fact that there is now a serious disconnect between the cost of houses and what people actually earn. That was not the case 10 years ago, but it is now. People who took out enormous prime loans haven't faced layoffs and foreclosure yet, but I can't see how that won't happen if the whole economy contracts.

[bugdog]

It ought to be open season on fatcat... No bag limit...

[CaptainAsshole]

Let me quote the ugliest person in the world.. Lemmy from Motorhead .... EAT THE RICH

[wm1066]

Its going to be the french revolution all over again as more and more people get thrown out of work. People will be starving and willing to go after the rich brokers in thier homes. And no army will be able to stop them.

[mezz1962a]

Oh by fatcats you mean the Ex CEO of Fannie Mac who made 90 million in 5 years who now works for Obama as his Economic adviser and who by some chance happened to give $40000 of Fannie and Freddy money to the Obama Campaign

[vippy]

Apparently, you have selective reading because you did not read about McCain's Campaign
manager who was the CEO for Fannie Mae. And the myth about giving to Obama from Fannie
Mae has been debunked, the employees chose to give him money. In other words you and I
can give money to whoever we see fit. Quit spreading lies.

[CaptainAsshole]

Raines doen not advise the Obama campaign, but Phil Gramm advises the McCain campaign.

[Bettysdad]

Don't get into a fight about which candidate or party is supported by overpaid CEOs.

You'll lose.

[BushSunkOurShip]

REPUBLICANS = Party of Crooks and Liars , carry the water of corporations and oil companies.
McCain = home base of lobbyist and crooks.
McCain = Hate Americans ,,, sends their jobs overseas then goes to workers and tells them Thoses jobs are gone forever my Friends.
http://www.reuters.com/article/pressRelease/idUS163588+12-Mar-2008+PRN20080312
DNC: McCain Myth Buster: John McCain and Defense Contracts
McCain = Elitist and certanly no friend of American workers.
http://harpers.org/archive/2008/09/hbc-90003510
Does McCain Campaign Chair"s Lobby Shop Share Skybox with AT&T?

*****
McCain = certainly no friend of soldiers or Vets.
http://www.veteransforcommonsense.org/articleid/9559
McCain's Voting Record: He Does Not Support Our Troops and Veterans

http://tribes.tribe.net/politicaljunkies/thread/8e095d60-679a-48ba-a91e-fe7de85aa786
reading about McCain's POW years and nefarious activities since