Tuesday, February 9, 2010

never underestimate politics

it is said that money is supreme and corporate tycoons are power brokers who can do whatever they want. the recent incident of goldman CEO accepting/being given a very low bonus of $9mn as compared to $68 mn in 2007 with similar bank performance is an indicator of how strong popular voice supported by politics can force the mighty to do their bidding. I mean one can't get go back next year and give bonus for this year. then this is something spectacular happening here. public anger over perceived or actual incompetence of wall street forcing people to change their practices.

now the thing to see is whether there will be movement away from goldman sachs of the key employees due to low bonuses. does the bugbear of the reason why we need high pay in wallstreet is talent which will move away if denied obscene compensation is true or not? This is certainly me not being envious/jealous of wall street and want some sort of closure ..this is more from economic theory of whether labor markets clears and is so efficient?

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