Wage Controls for Wall Street?

Wage controls
for wall street

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Obama expressed outrage earlier this week after the New York state comptroller reported that Wall Street firms disbursed $18.4 billion in bonuses last year as the U.S. sank into a recession. While the figure represents a 44 percent decline from the previous year amid record losses in the securities industry, the bonus pool was the sixth-largest ever, the comptroller said in a yearly report. [bloomberg]

Politicians make low salaries but make up the difference with graft, and with revolving door jobs before and after taking office. Are we suggesting that Wall Street should work the same way, on the take and off the books? Or should the firms that take bailout money pay lower compensation than those who did not get bailed out? Will that lead to a brain drain from the bailed out companies? And if the loss of brains leads to a less efficient firm, will we bail the dummies out again? Seems that the only real solutions are systemic. Maybe a year of unpaid job corp service for every year an executive makes more than one million? Make philanthropy mandatory at a 55% rate above one million a year in compensation? Wage Controls for Wall Street?
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Best bipartisan buddies: Sarah Palin and Barack Obama

Sarah Palin
Barrack Obama

Los Angeles Times, CA
January 30 2009

While most everyone was watching the attempted bipartisanship on Capitol Hill this week, some of it broke out successfully in an unlikely place elsewhere.

It seems that Alaska Republican Gov. Sarah Palin, the unsuccessful GOP VP nominee, was worried that the Army was going to cut off pensions to the state's old-timers long-retired from the Alaska Territorial Guard. So she sat down and wrote a letter to the new big guy himself, Democratic President Barack Obama, who's vowed to take extra special care of veterans.

And the largest state's small congressional delegation got involved too.

And, what do you know? According to the ever-vigiliant Sarah Palin for President blog, the Army suddenly decided it didn't really need to cut off those payments after all

It found a special fund to pay them, while Sens. Lisa Murkowski, a Republican, and Mark Begich, a Democrat, together shepherd the proper authorizing legislation through Congress.

Amazing when it works.

And speaking of Sarah and Barack, this weekend they're both attending the off-the-record black tie dinner of the Alfalfa Club, one of those fraternity-like get-togethers that Washingtonians schedule throughout the year to convince themselves of their eliteness. Palin, who as The Ticket reported, formed her own SarahPAC this week, says she's attending to pitch the interests of Alaska.

And?

According to Paul Bedard over at Washington Whispers, Palin's presence in D.C. has sparked an interview bidding war between CNN's Larry King, who's had seven wives and almost as many heart attacks, and ABC's George Stephanopoulos, who hasn't.

--Andrew Malcolm

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Photo credit: Vogue

French Strike against economy

French Strike
against economy

1 February 2009
Wall Street Journal

French unions are worried that the faltering economy will lead to massive job cuts. So naturally they organized a general strike yesterday that could cost the economy a few hundred million euros in lost working hours. Nobody has ever accused the union bosses of clear thinking.
"Black Thursday" is the first sign of political trouble in a major European economy as a result of the economic crisis. More than one million people protested against President Nicolas Sarkozy's economic management. As always, France's public-sector employees were particularly eager to strike -- 23% of them didn't show up for work

Apart from the professional strikers among France's radical unions, many French people are genuinely scared of losing their jobs. Unemployment, just under 8% now, could top 10% by next year. About 70% of the public support the strikes. The problem is that the left is fueling these understandable fears to advance its political agenda, which would only make things worse.
The opposition Socialist Party called for the government to revoke tax cuts of up to €15 billion implemented in 2007, right after Mr. Sarkozy's election, and to spend that money on pump-priming the economy. The unions demand that the government halt precrisis plans to phase out 30,000 jobs in France's bloated public sector. But government debt is already on the rise as a result of the recession, multibillion-euro banking bailouts and stimulus plans. Urging the state to waste more money on superfluous pencil pushers is no boost for the economy.
The unions also want better job protection and a repeal of legislation that relaxed rules on the 35-hour workweek. But this would only increase production costs for French companies, forcing more layoffs. Unemployment would worsen.

Trouble is also flaring up elsewhere in Europe. Iceland's government had to resign Monday after weeks of protests. The economic crisis has triggered antigovernment protests in Bulgaria, Latvia and Lithuania. Several countries face general elections later this year, including Slovakia, Lithuania, Bulgaria and Germany, Europe's biggest economy.

These campaigns will take place amid the worst recession in decades. The challenge for mainstream parties will be to prevent social unrest while stopping radicals from gaining at the polls. As tempting as it might be, pandering to the left can only backfire.

Somalia: New President Sheikh Sharif sworn-in

Seikh Sharif Sheikh Ahmad
the new President of Somalia

Jan 31, 2009

DJIBOUTI CITY, Djibouti Jan 31 (Garowe Online) - The newly elected president of Somalia's 'unity government' was sworn-in Saturday in a ceremony attended by international diplomats, Radio Garowe reports.

Sheikh Sharif Ahmed took the oath of office in Djibouti City, where Somali peace talks ended yesterday after he was elected president by an expanded parliament that included Islamists.

The swearing-in ceremony took place at Hotel Kempinski, with diplomats from the United Nations, the African Union, the European Union, the Arab League watching as Sheikh Sharif swore on the Qur'an, Islam' s holy book.

Somalia's new president addressed the gathering afterwards, promising to lead the Horn of Africa country out of chaos and in a new direction.

He thanked the international community for its support during the peace process, while calling for peaceful relations with neighboring countries like Ethiopia.

President Sheikh Sharif vowed to take strong action against pirates, saying: "I ask for the Somali people’s help as I take on this big responsibility."

He spoke at length about Somali reconciliation, restoring security and strengthening international cooperation.

The new government is mandated to work during a transitional two-year period, as it attempts to retake control of the capital Mogadishu, much of which was seized by Islamist rebels after Ethiopian troops withdrew last month.

Sheikh Sharif's new government faces colossal challenges and the government's performance will largely depend on foreign support.

Two self-governing regions in the north – Somaliland and Puntland – have rejected the Djibouti peace process altogether, while the Al Shabaab guerrillas who are dominant in southern Somalia say the war will continue until Islamic law is restored.

Celebrations erupted in parts of Somalia, including Mogadishu, Middle Shabelle and Hiran regions. Hundreds of supporters cheered Sheikh Sharif's victory.

Source: Garowe Online