Meet the Press' "Fair and Balanced" Panel Defend Wall Street Bonuses
The panel on Meet the Press of Erin Burnett, Mark Zandi and Steve Forbes responding to the statements made about Wall Street bonuses by President Obama and Sen. Clair McCaskill. Apparently Erin Burnett thinks the silly populists out there just need the shell game Wall Street played with the bonus money explained to them.
MR. GREGORY: In, in just a couple of minutes left, I want to talk about something about everybody understands, and that is bonuses on Wall Street. And we find out this week from the New York comptroller's office that Wall Street allocated $20 billion in bonus money, the same amount as 2004. It created some pretty strong reaction from the White House to Capitol Hill. Watch.
PRES. OBAMA: It is shameful, and part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility. You know, the American people understand that we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up.
SEN. CLAIRE McCASKILL (D-MO): We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer. They don't get it. These people are idiots. You can't use taxpayer money to pay out $18 billion in bonuses. What planet are these people on?
MR. GREGORY: Fair question, Erin?
MS. BURNETT: I understand the outrage, and you understand the populism. There are, though--well, how should we say this? The taxpayer money is not being used to pay the bonuses. I think people could understand if you work for a company--right? If the three us worked for a company, your guests, and I lost $10 billion but Steve over there, he made a billion dollars. So overall the company actually loses money, but Steve went and did his very darndest for that company and he made money. So should he be paid for his work? That's essentially what we're talking about here. And reasonable people could argue about this, but many reasonable people would conclude, yes, he should be paid for that. And I think, David, you've raised a fair point, which is maybe it's the whole use of the word "bonus."
MR. GREGORY: Mm-hmm.
MS. BURNETT: If you explained to people this is how they are compensated, that might make a difference. But there is also a fundamental misunderstanding. The taxpayer money isn't being taken and paid out in the form of bonuses. It goes in a, a separate pool, shall we say, a separate account for banks. So maybe people don't care about that distinction, but it is there.
MR. ZANDI: Well, this, this highlights a very significant risk...
MS. BURNETT: Mm-hmm.
MR. ZANDI: ...of the government coming in and giving this money to the banking system, that we're effectively nationally the system in one form or another. And by doing that, then taxpayers, rightfully so, are saying, "Well, I want some control of what you do with this money." So now we're talking about compensation, which I think is a reasonable thing to do, but it is a slippery slope. And one thing I do worry about is that maybe the next thing is that we start making strictures on what kind of loans they can make or what kinds of deals they can fund or can I, can I fund a bank that's going to produce a factory in, in Mexico? I mean, these are decisions that are very difficult for government to make and can't make wisely.
MR. FORBES: And this gets to the danger of what you might call financial protectionism; that is, a return for these new monies, new capital, banks won't be able to lend overseas, which is a form of protectionism and gets in the way of the system.
MR. GREGORY: But as--does Wall Street need to absorb the fact that if they need lots of taxpayer help, they have to find a way to speak directly to the American people about what they do...
MR. FORBES: Yes.
MR. GREGORY: ...and the importance of what they do, if they want $1 trillion, $2 trillion worth of taxpayer money?
MR. FORBES: Yes. Well, Wall--yes. Wall Street has to learn the golden rule: He who has the money makes the rules. And in Washington, they have the money so they're going to make the rules. Get used to it. You want the help, you pay the price for it. And I think they've been slow in doing that.
MS. BURNETT: The rise in populism, though, has been amazing. I mean, just the rhetoric out of Barack Obama and Joe Biden this week, that they talk--used the word shameful and outrageous to refer to Wall Street practices. You know, and I'm hearing that that's much more they know that they're going to have to bail them out and they don't want to look like they're doing it because they want to, as opposed to a real shift of populism.
MR. GREGORY: All right, we are going to leave it there.
"you put in $1 into an institution, it’s impossible to follow where that $1 goes." ... Assistant Treasury Secretary Neel Kashkari
Yeah, well. So she knows? I suggest she sit down with the asst. treasury secty. and clear that up for him first before more interviews.
The new bubble is here, and its The Banks borrowing from the Fed. Link is to two simple charts. Problem should be obvious.
The banks should borrow from the fed btw, but in moderation or it creates a bubble that leads to hyper-inflation. See the two charts in link. Modelers are wetting their pants now. No one knows what happens, as we have now entered territory for which there is no data. Or .. we are already off the cliff. The Fed drove off the cliff in 2008. Do they have a parachute (opinions vary)? The Fed is creating money supply at rates that are unprecedented since its creation, and has done this since Jan. 2008.
Read this for the full money supply charts with more math and the long explanation of "we are already off the cliff".
... and HOLY JUMPING CHRIST!!
Borrowing from the Fed goes from a max of $8 billion to, in 2008, nearly $800 Billion ... and that doesn't get into 2009 yet.
I might as well take my retirement savings and "invest" it all in whores and whiskey -- because inflation is gonna wipe us all out anyway.
this is just bullshit. why would ANY Gov want to have a private BANK to control there money. Time to fire the fed res and time for the Gov to take back there money. the fed res has F-ed up the US. look at the histroy of banking. they have controled every thing. they have created every down turn in the US for the last 98 years. ys think you are getting the American Dream in buying a home, think again. It is set up for you to FAIL. they tell you you have a realy GOOD %. I say bullshit. Your Loan, about 80% goes to the Bank in the first 10 years, where is the Dream, its a bankers Dream. A friend finaly said he got it. I have been telling him what crap they have been feeding him. He told me he payed $10,000 in intrest last year and payed only $2200 on his loan, and they told him He got a Good interest rate. Noe the bank are getting loan at 0%. why are home loans still at 5 to 6%. This shithole we are in now because of a jerk stoled 2 elections and just F-ed up the country and can just WALK away to his 2.1 million dollar house is ???
working people of America, open your eyes now. call our congress now and tell the Dems to remind them how the repugs treated them for 6 years. I have called I will keep calling. just think if 2 or 5 or 9 million people called. ya think they might get a clue. Only way to find out!!!!!!!!CALL NOW!!!!!!!!
or is an an "Excuse."
In the past, my bonuses were dependent upon 3 things:1)how I personally did my job; 2)how my department or division did; and 3) how the company overall did.
If the company overall lost money, how do you even give any money as bonuses, even if certain individuals did a great job? To some extent, I can understand that these certain individuals might get a decent bonus, but overall, to the tune $18 or $20 billion???? And didn't many of the CEOs get huge, grandiose bonuses????? How can these CEOs get such bonuses at all if the entire company lost money????
some people in congress are shocked that 18 billion went to CO's. WTF. most people I have talked to did not like the idea to give 335 billion to banks. but the good people in congress Dems and Repugs thought the Bank and wallstreet people would spent the money to help the working class. I have some land I would to sell to congress.
Really, the way douchebags like Burnett, Gregory, et al pratically spit out the word "populism" - you would think it's some kind of insult. I can see why the pampered, over-paid prima donnas of the media class would think so:"How dare the ignorant, unwashed, working class rabble question the wisdom of their betters in DC and on Wall Street" But the fact remains, if a true populist movement were to awaken in this country, all these two-bit corporate whores would be out of jobs - like yesterday. By the way, isn't Erin Burnett the genius who, while on "Hardball" said that if Americans wanted to keep prices low on goods, they should stop whining about toxic, tainted products being imported from China?
If you have selfish, ignorant citizens, you're gonna get selfish, ignorant leaders.
George Carlin
If my business does not make a profit guess what you are not going to get any bonus!
I don't know why these idiots don't understand that what they are doing is shameful and to have that woman sit there and lie like an idiot just goes to show that the media is in the corpporate pocket 24/7/365.
All these people are paid liars!
Every step of the government should have a black and white documents. It should be visible to the people.
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