This morning on Bloomberg TV, there was another one being interviewed about the new restrictions attached to the stimulus bill set to be signed into law later today in Denver by President Obama. I’m sure you’ve heard the reasoning against restricting the top pay in those businesses receiving financial assistance from the federal government.
The argument I’m hearing that grates the most is the threat that those in charge of these sinking ships being thrown tax-payer funded life savers will leave due to the new caps on top salaries. When will an interviewer follow up this statement with the simple question: “Where will they go?” Really, it’s hard to understand how that question doesn’t just flow out with an air of incredulity. It’s like watching some guy bluff in a game of 5 card draw when he’s only holding 2 cards. Makes you wonder if he really understands how the game is played, or if he knows that WE understand the rules of the game.
The next shill who voices those words really needs to be called to expand on this theory of brain drain. The only game left in town, so to speak, is Shanghai, where Wall Street bankers are being hired, but that’s probably so that down the road, when the global economy is recovering, the Chinese banks can swoop into New York with teams of experienced professionals ready to take control. Or at least, that’s one theory I heard. Otherwise, all this talk about offending the delicate financial sensibilities of the finance industry’s eliteis all just so Dubai.