Ok, so this law allows the government to lend money to companies to help them to stop from from going under. The law however now includes a limitation on the "golden parachutes". These "Parachutes" are what CEO's receive in the event the company goes under. Now, the CEO's are the ones who decide weather or not there company needs this help from the government.
Now, here is the problem. If you can choose between making say $800,000 or $4 million what would you choose? Well, I personal would want $4 million, and I don't believe anyone who says they would want less. Your a fuckin liar so don't even try it.
If these CEO's choose to receive the help of the government then they are limiting the amount of money they will make. Sure the money they receive could, "COULD" help to get the company back on track and over time the CEO's might make more money, but what happens when it does not work? Well, this is what happens; the company goes under and the CEO's get a smaller portion of money because they accepted the bailout money. So in the eyes of the CEO, they may as well not take the money, let the company go under, and walk away with millions of dollars.
This is why the stock market is still going down, because people do not have the confidence that the CEO's will do the right thing, and why would they? There wallets only get lighter if they do.
“Get the facts first. You can distort them later. ” - Mark Twain
Question with boldness even the existence of a God; because, if there be one, he must more approve of the homage of reason, than that of blind-folded fear.
- Thomas Jefferson
Anonymous Coward User ID: 488240 10/6/2008 2:33 PM
Ok, so this law allows the government to lend money to companies to help them to stop from from going under. The law however now includes a limitation on the "golden parachutes". These "Parachutes" are what CEO's receive in the event the company goes under. Now, the CEO's are the ones who decide weather or not there company needs this help from the government.
Now, here is the problem. If you can choose between making say $800,000 or $4 million what would you choose? Well, I personal would want $4 million, and I don't believe anyone who says they would want less. Your a fuckin liar so don't even try it.
If these CEO's choose to receive the help of the government then they are limiting the amount of money they will make. Sure the money they receive could, "COULD" help to get the company back on track and over time the CEO's might make more money, but what happens when it does not work? Well, this is what happens; the company goes under and the CEO's get a smaller portion of money because they accepted the bailout money. So in the eyes of the CEO, they may as well not take the money, let the company go under, and walk away with millions of dollars.
This is why the stock market is still going down, because people do not have the confidence that the CEO's will do the right thing, and why would they? There wallets only get lighter if they do.
Quoting: Anonymous Coward 518603
That's part of it, but the fact that European banks are buckling as well says that this problem is absolutely enormous... $700 billion won't do a thing
The fall was accelerated due to europe and hesitation by banks
Anonymous Coward User ID: 438861 10/6/2008 2:39 PM
More to come... Lehman credit swaps (derivatives) auction on Friday, October 10th. Just sayin'... Wasayo "Wealth or poverty depends on the absence or presence of desires, respectively. He who has no desires is rich. He who does not desire anything is sovereign." Maharaj Sawan Singh Ji
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