muck Posted February 23, 2009 Share Posted February 23, 2009 This is a blurb from the guy I've been telling everyone here to read for the past couple of years. Quote Link to comment Share on other sites More sharing options...
BeeR Posted February 23, 2009 Share Posted February 23, 2009 Maybe the mattress aint so bad after all. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 23, 2009 Share Posted February 23, 2009 Nationalizing the banks scares the crap out of me. I can the government using banks in the same way they use taxes, unfairly to punish some and help others. I can see someone less deserving from a pure financial standpoint getting a loan over someone more deserving due to political affiliations etc... or giving preferential interest rates to this minority or that even though based upon their financial situation they are less deserving than someone else. Quote Link to comment Share on other sites More sharing options...
muck Posted February 23, 2009 Author Share Posted February 23, 2009 Interview with Nassim Taleb Quote Link to comment Share on other sites More sharing options...
TimC Posted February 24, 2009 Share Posted February 24, 2009 Let's go ahead and invade Germany and Japan now. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted February 24, 2009 Share Posted February 24, 2009 Let's go ahead and invade Germany and Japan now. I'd be investing in gun and ammo manufacturers. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted February 24, 2009 Share Posted February 24, 2009 I think that this crisis will end up being somewhere between not that big a deal and the worst thing imaginable and I'm suspicious of people that claim it will be one or the other. Quote Link to comment Share on other sites More sharing options...
Jackass Posted February 24, 2009 Share Posted February 24, 2009 I think that this crisis will end up being somewhere between not that big a deal and the worst thing imaginable and I'm suspicious of people that claim it will be one or the other. I think we're already long past 'not that big a deal' Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 I think that this crisis will end up being somewhere between not that big a deal and the worst thing imaginable and I'm suspicious of people that claim it will be one or the other. I'm guessing we are a lot closer to something between the late 80s and the late 70s and no where near the Great Depression. Quote Link to comment Share on other sites More sharing options...
muck Posted February 24, 2009 Author Share Posted February 24, 2009 I'm guessing we are a lot closer to something between the late 80s and the late 70s and no where near the Great Depression. ...except that the 'system' is so much more complex now (by an order of magnitude) than it was then...which is making extricating ourselves that much more difficult... Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted February 24, 2009 Share Posted February 24, 2009 I think that this crisis will end up being somewhere between not that big a deal and the worst thing imaginable and I'm suspicious of people that claim it will be one or the other. i'll plan for the worst thing imaginable and be thrilled if it doesnt happen. Quote Link to comment Share on other sites More sharing options...
yo mama Posted February 24, 2009 Share Posted February 24, 2009 This is a blurb from the guy I've been telling everyone here to read for the past couple of years. The article hits upon the main problem to preventing this problem from happening again: there was no regulation of the financial incentives to engage in risky behavior because compensation got paid without regard to the success or failure of the financial products that were sold/created. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 24, 2009 Share Posted February 24, 2009 The article hits upon the main problem to preventing this problem from happening again: there was no regulation of the financial incentives to engage in risky behavior because compensation got paid without regard to the success or failure of the financial products that were sold/created. Been saying that for ages - tie bonuses to three to five year performance, not the next quarter. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Been saying that for ages - tie bonuses to three to five year performance, not the next quarter. Sounds like a good deal to me for the most part, but what do you do about the guy that has been there for two years and done a heck of a job? Do you guarantee the bonus 5 years out based on performance of the company even if the executive has since left the business for what ever reason? If you don't, what is to keep a board of directors from firing an executive right before they are bonus eligible? How do you determine the amount of a bonus for an executive that is already gone? Ursa, honestly I like your idea, I think that it would help, but it would be hell to implement. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted February 24, 2009 Share Posted February 24, 2009 i'll plan for the worst thing imaginable I know you will. Quote Link to comment Share on other sites More sharing options...
Cunning Runt Posted February 24, 2009 Share Posted February 24, 2009 If you don't, what is to keep a board of directors from firing an executive right before they are bonus eligible? Well, what is to prevent it from going down this way even on a quarterly basis? Basically I think the answer to this is self evident - companies don't fire the people that are producing results for them, especially if they've done so for an extended period of time. And even if they did pull that stunt, that's their right. But you've gotta know that word of that sort of tactic would get out and they wouldn't be able to attract quality talent going forward. At my company, I must be on the payroll at the time a bonus is awarded. If I'm not, I don't get the bonus. Same goes for my stock units vesting. But I produce so I'm not concerned about getting let go so the company can save my bonus money. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Well, what is to prevent it from going down this way even on a quarterly basis? Basically I think the answer to this is self evident - companies don't fire the people that are producing results for them, especially if they've done so for an extended period of time. And even if they did pull that stunt, that's their right. But you've gotta know that word of that sort of tactic would get out and they wouldn't be able to attract quality talent going forward. At my company, I must be on the payroll at the time a bonus is awarded. If I'm not, I don't get the bonus. Same goes for my stock units vesting. But I produce so I'm not concerned about getting let go so the company can save my bonus money. I agree for the most part. Though if you are waiting 5 years that is some good change gathering. I guess based upon this response you feel that labor unions are no longer needed, as productive workers are always rewarded. Quote Link to comment Share on other sites More sharing options...
Cunning Runt Posted February 24, 2009 Share Posted February 24, 2009 I agree for the most part. Though if you are waiting 5 years that is some good change gathering. I guess based upon this response you feel that labor unions are no longer needed, as productive workers are always rewarded. You guess correctly. I personally am very anti-union. Quote Link to comment Share on other sites More sharing options...
Jackass Posted February 24, 2009 Share Posted February 24, 2009 Sounds like a good deal to me for the most part, but what do you do about the guy that has been there for two years and done a heck of a job? Do you guarantee the bonus 5 years out based on performance of the company even if the executive has since left the business for what ever reason? If you don't, what is to keep a board of directors from firing an executive right before they are bonus eligible? How do you determine the amount of a bonus for an executive that is already gone? Ursa, honestly I like your idea, I think that it would help, but it would be hell to implement. Hard to implement but not impossible. Some companies have started to do this with some traders. I believe you pay bonuses even after they leave the co. my guess is it's just put it in the contract and based on some math formula of profits. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 24, 2009 Share Posted February 24, 2009 Sounds like a good deal to me for the most part, but what do you do about the guy that has been there for two years and done a heck of a job? Do you guarantee the bonus 5 years out based on performance of the company even if the executive has since left the business for what ever reason? If you don't, what is to keep a board of directors from firing an executive right before they are bonus eligible? How do you determine the amount of a bonus for an executive that is already gone? Ursa, honestly I like your idea, I think that it would help, but it would be hell to implement. You raise some good points but nothing that couldn't be addressed reasonably simply. There is pro-rating as an option, gotta be present to collect is another option and other than for provable cause, maybe firings trigger the bonus immediately or on the original schedule? CR made a good point also - companies don't fire their top people. All that said, the thrust is to make sure that the sight horizon gets extended for all, not just executives (traders for instance). The cost of doing this is surely vastly exceeded by the trillions already lost in this one episode due to no-one looking beyond the end of their nose. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.