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Upside Down Thinking

The Wall Street Journal reported today that the Obama Administration is contemplating new laws and regulations to control the way Banks compensate their employees.  This is being done because:

"President Barack Obama and Treasury Secretary Timothy Geithner have both blamed the way banks structured compensation plans for contributing to the financial mess. In February, Mr. Obama said executive pay helped lead to a "reckless culture and a quarter-by-quarter mentality that in turn helped to wreak havoc in our financial system.""

I suggest that they have it upside down and it is the irrational and heavy-handed government regulations already in place for the Banking Industry that helped lead to a state of affairs described as "havoc in our financial system".  These regulations and government actions have been discussed elsewhere and include "mark-to-market" regulations and compulsion to loan to high risk borrowers among others. 
What is sad about the proposals being contemplated is that the industry, as represented by its' spokesman Edward Yingling (Chief Executive of the American Bankers' Association) is already to accept some proposals, rather than calling for complete rejection of the Government proposals.
The Fascist State will control the Banks and they will not be better off for it - just one more example of upside down thinking.

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