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-- Posted Thursday, 11 June 2009 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Thursday, June 11, 2009 “Phenomenally accurate forecasts” We side with the rabble rousers – Chris Dodd, Barney Frank, and all the other hard-core lefties in Congress -- on the corporate pay issue. For every CEO who got an eight-figure bonus in recent years, we knew a dozen guys personally who could have gotten the job done for $250k and a health plan. Dick Grasso, the former head of the NYSE, was the last straw. After a four-year legal battle with Elliot Spitzer over his nearly $190 million compensation package, Grasso prevailed in the Appellate Court. “From the get-go, there was never anything improper,” he told reporters after the decision. Improper? Perhaps not. But indecent? For sure. The Wall Street Journal had the chutzpah to assert that Grasso was worth every penny of the huge bonus he got for running the exchange for eight years. In fact, like Bill Clinton, he was simply in the driver’s seat when economic cycles were at their most felicitous ever. As a result, like so many other executives working at his pay grade, Grasso benefited from share prices that were so ridiculously inflated that no one noticed when tens of millions of dollars were skimmed by the corporate brass. Thumb Twiddling Ahead? To help rein in executive pay, Geithner has appointed Washington attorney Kenneth Feinberg as “pay czar.” We don’t know what Feinberg’s plans are, but he may wind up twiddling his thumbs as the U.S. economy sinks deeper and deeper into depression. The Obama Administration’s proposal would give shareholders a voice on executive compensation. But then, shareholders have always had a voice; they just chose not to say anything. That’s the way the fat years played out: shareholders’ IRAs were reaping steady gains, and anyone with money invested in stocks was making money. Who cared whether top-level executives were getting filthy rich? Now, with the economy in a funk that could last for decades, the opportunities for perfectly legal corporate looting will be few and far between. Grasso and his ilk would need an armed escort just to get in and out of the courthouse. *** Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers' initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Thursday, 11 June 2009 | Digg This Article | Source: GoldSeek.com
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