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Wednesday, July 29, 2009

Wall Street Banks Strike Again

As you are well aware, almost everybody in the U.S. is outraged at the bonus paychecks that went to the Wall Street Bankers whose behavior led directly to the current recession. And those bonus checks just keep rolling out. Every one of Goldman Sachs 30,000 employees are on track to receive average annual bonuses of $777,000.

Congress is aware of the outrage and is in the process of passing legislation to reign in those out of control bonuses. The guts of the law is that shareholders would have an annual vote on salaries and bonuses of top employees.

Now that is spineless enough, but here is the kicker. The vote would be NON-BINDING, which means that the managers are completely free to ignore the vote. Hence, business as usual!!

The subtext of our book, The Great Recession Conspiracy, is that there is a cabal of Wall Street banks that actually run the U.S. Treasury Department, and do so only in their own interest. And it looks like no one in Congress is willing to take this cabal apart. So we are laying the ground work for our next recession even before we recover from this one.

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