politics

What The Stress Tests May Show

I think stress tests on the banks are going to be a continuing saga of gloom that will further sour the public on high salaries for incompetent management. This from Obsidian Wings is conclusive, even if it is extreme. FULL SOURCE

Hilzoy writes:

I have been hearing for years and years about how the financial services sector pays such exorbitant wages because the people who work there are so immensely talented that they are cheap at $50 million a year. I never particularly bought that line before. But I never imagined that all those Masters of the Universe would do quite this badly. If we had paid them $50 million a year to go far, far away and leave our financial system alone, it would have been a bargain.

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politics

Spoiled Yuppie America

Do not read this if you hate irrational rants.

Poor market. The Treasury guy did not give enough details and so everyone pouted with their portfolios and waited for a silver spoon to gratify their Yuppie dependence on privilege and arrogance to win any face-off.

I remember when this Ugly American breed first emerged. It was at the apex of the Reagan Presidency. You knew them by their rude pushiness. Their utter disdain for the etiquette of public space. And for the strident and near-comical tone of their voices.

It was at this time that the use of the word like emerged as a speech connector. Everyone began punctuating their strident public conversation with the words like…like…like. This served to plunge everything into the realm of illustrative metaphor or emotional exhibitionism. I always figured it was insecurity. Now I am thinking it was self-serving vulnerability, faux angst.

Yesterday’s market performance revealed that the market, yuppie dominated, cannot connect the dots. Nor for that matter can the New York Times and everyone else who interprets the Geithner performance yesterday as having been scanty on details.

Yesterday was not about details, dear Yuppies. You will get details for sure. Ah, but there is no such thing as patience to be had from this sociological cesspool. Yesterday was about being loud and clear and few got the message.

The Yuppies were brought up by parents who barely knew how to live themselves and when the Yuppies came of age they covered their own ignorance by resorting to resources such as the New York Times, which is in reality a primer on how to live above your means and put your foot down on the heads of those who cannot keep up. The Pour and all that.

So we have a spoiled constituency turning the market into a punching bag just as Geithner broadcasts that we are about to have some order in the house.

I devoutly hope that Spoiled Yuppie America is brought to some self-knowledge, though my own attitude is so dismissive that if I were reading this and had Yuppie blood, I would diss me big time.

But let me try to preach some truth here:

Dear Yuppies, henceforth we are going to make it harder and harder to have an economy based on the artificial inflation of values so that you can earn an artificially high salary for dunning those who do not understand what you are up to.

We are going to regulate you.

And we are no longer your willing servants, moving when you get peremptory on us. We are going to save the market because that is where normal people have a stake.

The day will come when your petulance will not be able to set off bells and alarms.

We are going straight back to the era that your parents wanted to escape. bemused by the allure of glamour and the belief that Roadmasters would rule forever. Only this time we are going to do it right, with enough force to save you in spite of yourselves.

This is a grow up call and maybe a couple of you will get the message. The rest of you can go back to your drugs and alcohol. Your day is done.

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