Seven bailed out companies getting pay cuts! I think they deserve worse!

I recently wrote of JP Morgan Chase screwing us over by refusing to cut back on its credit card rates. I was really appalled after being thrown under the same bus, us taxpayers pulled them out from in front of. Now I find myself writing this because I almost need to apologize. (Well almost)

You see it is true that JP Morgan Chase was bailed out buy the American taxpayers. They were not the only ones bailed out though. It seems that last year a lot of major corporations were bailed out. Only a few of them seemed to take it seriously, and showed any appreciation for it. JP Morgan Chase knew in their hearts they did not want to be at the mercy of the US Government, so they payed back their debt to the American people. For that, at the very least we could say they had a very talented executive staff. For that reason, those executives will be able to keep their pay intact. The executive staff of JP Morgan Chase will not be a pert of the seven listed companies being capped at 200,000 dollars a year.

Bank of America, AIG,Chrysler, General Motors, GMAC, and two other major players on Wall Street will be highly effected by the new income cap. The cap has been a little bit elusive for me , as the many sources I have heard the story from have told me many different details. I believe that the caps are laid out as follows. On average, all of the top tier executives will be taking a 50% pay cut, and some will be taking a 90% pay cut. Either way they will all still be making hella more money than 90% of the American population that saved their proverbial asses. Thirty percent of those being the people that have paid a percentage of the over 35 billion dollars financial institutions are expected to collect , this year alone in OVERDRAFT FEES. Then all of those 90% are subject to sky rocketing interest rates as explained in My JP Morgan Chase blog from last week.

I had the torture of listening to a bunch of republicans claim how wrong it was for our Free Enterprising American Government to socialize the payments to the executive order. One example claiming that an electrician making 50k a year would not go work for the union , only to make 35k a year. The Gentleman from the Allen Hunt show, on 97.3FM, was appalled at our governments stand on the situation. All the while claiming he was against the bail out completely, but because it was in the past we should be standing behind these CEOs, in full support of what they do. Allen Hunt went on to say that the reason these Corperate executives made such absurd amounts of money was; because they were the very best that the American gene pool had to offer. That these people would not stand for the income caps placed apon them, and they would leave. In the action of leaving, they would take their entire support crew with them. As part owners of these failing corperations, we needed to support them with good tools and knowlege bases to provide a successful, money making corporation.

Other companies will be more appealing, slowly leading all of the great leaders of these corporate entities away from their post. Well, my real concern is the resumes of these great leaders. The only person I know that has been successful at driving companies into the ground, and coming out on top, is George W Bush ( The younger one). I mean , come on. Who wants to hire the same guys that drove these major companies so far into the ground, that bankruptcy alone could not save them? If that is what gets me 200k a year, I need to start putting that on my resume. Maybe we all could.

I think the people worth the money, (even if they are asses) are the leaders at JP Morgan. Funny thing, they are not on the cap list. The reason they are not subject to the cap list is, because they paid back the government, their 180 billion dollar loan. Bank of America, Chrysler, Gm,Gmac, and AIG have not, yet their executives make millions of dollars a year. Listen people! A company does not have to show a profit with real gains. Everytime they start making money, they can vote themselves big fat hairy raises; Therefor leaving the company broke as a joke. The same tactics used prior to the bailout. These practices, in turn, left the companies without any financial cushion. No money to use in order to wait out the ever looming depression. The same depression that hit, when the banks own tactics of equity fluffing, started to balance themselves out naturally. You see, it does not matter how much money you borrowed to buy your house, or how much money you payed to paint your new Escalade. It is only relevant how much money you can sell something for. If you owe 600k for your house, and suddenly need to sell it, it is only worth what you can convince someone to pay for it. Banks had this way of getting high appraisals, and loaning up to 100% of the value of a fluffed appraisal. All of this only to find out the guy buying the home was selling his ass on the strip to make over half of the payment. There was no paper trail or 1099 forms to back up the income. I do not think those people were eligible for workman's comp when the on the job injuries came about ( pimp slaps etc.)

The banks did not care. Write the loan. Write the loan! This was the practice of the executives. The big Kahunas making the big decisions. It worked for a while. People scrambled to make their payments. They worked the streets, they pimped their friends and etc.. Until one day the cops ran a sting operation and busted the Johns. No longer could the un verifiable income make it to the home owner. No longer could he make the payments.

George Bush went to war. Suddenly gas reached 4.50 a gallon. People had to pay 225% to get to work. Not 1.80 a gallon but 2.25 times that. Enron was jacking up California's energy rates so much that even Washington was getting screwed because of power diversions. Energy rates doubled in less than 2 years; Yet another 200% bill that budgets would not allow. People trying to escape the wrath of electric cost were driving up the demand for natural gas and propane. The cost of transporting goods, and food refrigeration doubled as well. Soon EVERYTHING doubled, except incomes and house values. House values started dropping like flies. People started becoming upside down on their houses. How absurd! Houses were sapossed to be investments. Always growing in value, but there was no room for mistakes. No room in the borrowed value v.s. equity. No room for homeowners to have increased living expenses, and no room for even standard inflation.

The Seattle houses were so badly overpriced that what you could buy for 30k across the country was selling for 500k. The value just was not there., but the Seattle houses were increasing in value 12% a year and the bank loans were getting paid with every remodel, every flip, and every sale. So the decisions the CEOs was to keep the sales up. Loan to the max and pray the 12% trend would hold. Seattle was one of the last cities to slow the housing market; But she fell. To this day, Seattle and LA are the last two big cities , still falling in home sales. Seattle based, Washington Mutual had so many of these failed home sales they were forcibly bought out, as a sweet deal, to JP Morgan Chase. ( Maybe an extra "Bail out hand")

Look at all of these choices that were made by the big banks. Look how much they risked,and yet did not lose. Thanks to us. Look how they were loaned the money to reinvest in America, and instead, relined their fat pockets. These people did not pay back their loans. They could of done at least that. I say, " Screw them!" Let them walk.

Do we really want to keep paying them astronomical wages , so they can keep our part owned investment companies broke?

Why should they make millions; If they can not make enough money to pay us back?

Why is it when we borrow money from them in an overdraft form; They can send us to jail for writing bad checks; but we have yet to send them to jail for destroying our economy. Putting us jobless. Making our people fear spending money.

Please, guys and gals, get out of our companies, or take your paycuts you so desperately deserve!