Billions in Wall Street bonuses; teachers put on the street
Let me run a couple of stories by you.
First, from the Washington Post:
Top Obama administration officials sharply criticized Wall Street firms planning to pay big bonuses, pointedly contrasting the soaring profits some financial companies have recorded in recent days with continuing high jobless rates across the country….
“The bonuses are offensive,” Obama senior adviser David Axelrod said Sunday on ABC’s “This Week,” adding that banks must do more to support lending across the country and should stop their lobbying efforts aimed at blocking the passage of new financial regulations that are being prepared in Congress…
White House Chief of Staff Rahm Emanuel chided Wall Street firms for neglecting their responsibilities “in the short period of time where they have a level of normalcy because of what the government did to help them.”
“Not only do they come for a bailout . . . they’re now back trying to fight a consumer office and the type of protections that will prevent another type of situation where the economy is taken over the cliff by the actions taken on Wall Street and financial market,” he said on CNN’s “State of the Union.”
“Federal stimulus dollars saved more than 250,000 teaching and education jobs this year, the White House claimed on Monday.
While the recession forced state and local governments to trim education spending, the cuts would have been far deeper without the stimulus cash, according to the report released by the White House Domestic Policy Council. …
For example, federal dollars helped state lawmakers in Alabama, California, Indiana and Oregon restore about 9 percent of previously trimmed money to its K-12 programs, Melody Barnes, director of the Domestic Policy Council, explained Monday.” (An earlier AJC story reports that 13,802 of those salvaged education jobs came from Georgia.)
I’m glad those jobs were saved. But the White House report is largely silent on the fact that despite the stimulus money, tens of thousands of other teachers have lost their jobs in this crisis; many others face unpaid furloughs, overcrowded classes and shortened school years. Furthermore, the stimulus money that has kept 250,000 teachers in the classroom for now is a temporary salvation.
Yet in a world in which we can’t afford teachers, a basic, fundamental commodity of civil society, Wall Street financiers are paying themselves not just large bonuses, but the largest bonuses ever paid out by a system that even in the boom years was egregiously self-serving.
And we’re supposed to just quietly, meekly go along with this, accepting it as the just verdict of the capitalist system.
Well it’s not. The system has been hijacked, and this outcome is wrong. It is wrong as a matter of moral decency; it is wrong as a matter of practicality. A society and an economic system that tolerate such inequities cannot in the long term prosper.
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182 comments Add your comment
Peadawg
October 20th, 2009
9:30 am
And y’all were all for those bailouts when they happened…”it’ll do more harm if we don’t help out now” y’all said. HAHAHAHAHAHAHAHAHAHAHAHAHA…nice going!
david wayne osedach
October 20th, 2009
9:32 am
How many banks and financial institutions that have received stimulus money have actually paid it back?
I Report (-: You Whine )-: Am I A Racist Too, NFL?
October 20th, 2009
9:32 am
I thought Obozo, mmm, mmmm, mmmmm, “created and/ or saved” 250,000 teaching jobs?
So which one is the lie, gee, let me guess…..
USinUK
October 20th, 2009
9:33 am
“Well it’s not. The system has been hijacked, and this outcome is wrong. It is wrong as a matter of moral decency; it is wrong as a matter of practicality. A society and an economic system that tolerate such inequities cannot in the long term prosper.”
Morality and economics barely speak with each other, much less have anything in common.
If morality determined pay, nurses, teachers, childcare workers and social workers would be paid a helluva lot more than they are. However, economics – supply and demand – is what determines remuneration (which is why sports stars, lawyers, doctors) are paid what they are.
As far as the bonuses go, from what I’ve read, most bonuses are going to be structured over a number of years with claw-back provisions included (as well they should be).
Bosch
October 20th, 2009
9:33 am
Welcome to feudalism.
USinUK
October 20th, 2009
9:34 am
oh, and one more thought – until the US changes its effed-up way of funding schools based on property values, then you’re always going to see teachers on the firing line during a downturn
USinUK
October 20th, 2009
9:36 am
peadawg –
1) I was then and still am for the bailouts
2) if you believe in trickle-down economics (which most folks on the right do), then you should be all for the bonuses — think about all the jobs it will create!!
Mrs. Godzilla
October 20th, 2009
9:38 am
but, but, but…. we can’t regulate compensation….it’s commie….it’s facist…. it’s socialist….it’s a slippery slope…..it’s unamerican…
did I miss any of the silliness?
Peadawg
October 20th, 2009
9:40 am
1) I was then and still am for the bailouts
So you’re for giving greedy executives bonuses that they don’t deserve?
2) if you believe in trickle-down economics (which most folks on the right do), then you should be all for the bonuses — think about all the jobs it will create!!
Giving a greedy executive will NOT create jobs…they’ll keep the money for themselves.
These bailouts were ridiculous. All it did was provide bonuses.
stands for decibels
October 20th, 2009
9:42 am
until the US changes its effed-up way of funding schools based on property values, then you’re always going to see teachers on the firing line during a downturn
USinUK, if you ever come back Stateside and decide to run for President, you’ll have my vote.
Just so you know.
USinUK
October 20th, 2009
9:42 am
Mrs. G -
I think you meant to say “it’s communo-fasci-socialist-pinko-slippery-slope-america-hatin’-San-Francisco-liberal-burkha-wearin’-mooslim”
Taxpayer
October 20th, 2009
9:42 am
I was all for saving our economy from collapse. I’m certainly not all for this “Wall Street mentality” that goes beyond “Too big to fail” to “Too big to care”. Unfortunately, that seems to be a recurring theme in corporate America. Of course, I fully expect to hear the Republicans come out in defense of these businesses and their right to give out whatever compensation that they see fit because all we have to do is not buy their stock if we do not like it and that will tell them.
And, yes, Peadawg, the harm would have been greater if Bush had continued to do nothing.
Normal
October 20th, 2009
9:43 am
I have always said to any who would listen that Educators should be making the money professional athletes make, and visa versa. That is, if our priorities were straight.
Peadawg
October 20th, 2009
9:43 am
“but, but, but…. we can’t regulate compensation….it’s commie….it’s facist…. it’s socialist….it’s a slippery slope…..it’s unamerican…”
It all depends on what Obama decides to stick his nose into. Regulating the use of bailout money towards bonuses isn’t a bad thing.
Vinny
October 20th, 2009
9:43 am
Note how Rahm Emmanuel stated that “in the short period of time where they have a level of normalcy because of what the government did to help them.”
Did you catch that? It wasn’t the taxpayer that helped the banks according to Rahm, it was “the government”
Get used to it folks – everything good comes from “the government” according to the Obama administration.
Free Market = bad
Government = good
Read it, learn it, live it…..
USinUK
October 20th, 2009
9:43 am
dB –
well, thank you!! my platform:
1) fix school funding
2) naps for everyone (1:30-3) – it’ll make for a happier country
3) no Christmas decorations out before Halloween
stands for decibels
October 20th, 2009
9:44 am
did I miss any of the silliness?
Bacrock Hussein Osammer has a hair trigger temper when it comes to demolishing American biness but dithers when it comes to sendin’ in more troops to blow s–t up.
Gotta get that one in somehow.
Peadawg
October 20th, 2009
9:45 am
“3) no Christmas decorations out before Halloween”
Unless you have ice sickle lights hanging on your gutters…those can be up all year b/c they are a pain to take down!
USinUK
October 20th, 2009
9:45 am
Peadawg –
“Regulating the use of bailout money towards bonuses isn’t a bad thing”
what about the banks that have already paid back the bailout money
Normal
October 20th, 2009
9:45 am
OK, USinUK, you got my vote with number 3!
Matilda
October 20th, 2009
9:46 am
USinUK, nothing on your platform there with which to disagree!
USinUK
October 20th, 2009
9:47 am
Peadawg –
“Unless you have ice sickle lights hanging on your gutters…those can be up all year b/c they are a pain to take down!”
sorry – should have been clear – I mean in the stores … I hate-hate-HATE Christmas stuff out in stores right alongside Halloween candy … one holiday at a time!!!
Paul
October 20th, 2009
9:47 am
Like I’ve said, if it’s not prohibited by law, people will try to get away with it. Especially when money’s involved.
The other issue, teachers: I’ve maintained for a long time kids’ chances at a good education and future success should not hinge on how much their parents make. Which is the situation we have with education funding driven largely by local property taxes and districts with financially successful householes attracting the best teachers, facilities and equipment.
Let locals run the curriculum. But abolish the property tax for school funding. Have teacher and administrator hiring, transfers, and salaries set at the Federal level. Put everyone on the same level field. Reward teachers and get them where they’re most needed. Give all kids the same facilities. Save dollars by getting rid of the literally thousands of positions that duplicate hiring, pay, evaluations, etc etc etc at each district around the country.
stands for decibels
October 20th, 2009
9:47 am
USinUK, don’t forget…
4. Supertrains, b!tches!
and
5. Buy Cox a decent blog platform so our posts don’t get eated.
Must run. Later all.
TnGelding
October 20th, 2009
9:48 am
Peadawg
October 20th, 2009
9:30 am
It was an investment, not a bailout. It will be repaid, with interest. And it has nothing to do with the irresponsible bonuses being passed out so soon after it was necessary. Their greed and feeling of self-importance boggles the mind under current circumstances. It looks like Congress is going to have to set limits on compensation since the boards won’t and the stockholders are powrerless to. That or a full fledged stockholders rebellion. Maybe the the Tea Party members could redirect their anger and join the fray, as well as the rest of us.
Let’s not confuse the stimulus package with TARP.
Bosch
October 20th, 2009
9:50 am
And Paul gets to be Secretary of Education.
Taxpayer
October 20th, 2009
9:54 am
So, I suppose the Republican approach to saving those teacher’s jobs would be to cut taxes. By the way, how many teachers in our public school system are Republicans?
TnGelding
October 20th, 2009
9:54 am
stands for decibels
October 20th, 2009
9:44 am
If you’d closely observe as much as you criticize you’d realize he’s turning the fighting over to the Afghans and Pakistanis with more U.S. support. If he was going to send in more troops he wouldn’t be dithering.
pat
October 20th, 2009
9:56 am
Well it seems to me that if they did not get these bailouts, they wouldn’t be getting these huge bonuses. You suported the stimulus, so deal with the consequeses. If obama loathes these big banks and lending firms so much, why in the hell did he just hand them billions of dollars in stimulus money? He should have let them fail. We are stuck with these a-holes because the decision was made to save them. Their fates should have rightfully been decided by bankruptcy court, which would have rightfully chopped these companies up and sold off the pieces. A company to big to fail is likely to big to succeed as well.
Big deal, so obama has harsh words, whootie do. If somebody has me a billion dollar check and wants to criticize me I will humble drive away in my brand new Ferarri.
Nope, obama rewarded bad behavior. Not only that, but the stimulus bill itself spells out bonuses are to be paid according to contract. This language was entered by Senator Dodd and sign into LAW by one President obama. He made it so it would be illegal for the bonuses not to be paid. This is the kind of crap that happens when you don’t know what your are signing.
Capitalism didn’t fail here, it was government intrusion that caused the fail.
The indisputable fact here is that if they did not get stimulus money, they would not be getting these bonuses, period. If you supported the stimulus, you are likewise culpable here.
BTW, the stimulus also contributed to 50% of the 1.4 trillion dollar deficit this year, $1,400,000,000,000. Tax hikes are coming, and it ain’t just going to be the greasy nasty rich, there’s just not enough of them to cover this debt.
Bosch
October 20th, 2009
9:56 am
Taxpayer,
“By the way, how many teachers in our public school system are Republicans?”
Lots.
getalife
October 20th, 2009
9:56 am
Shameless with no empathy for other Americans.
Must be cons.
Aloha Gator
October 20th, 2009
9:58 am
Attack those who create wealth and jobs.
Support the unions at any cost – No matter how corrupt they are.
Silence all dissent.
Threaten those who dare to ask questions.
Control the schools. Control the media. Control the banks.
Joseph Stalin, Mao Zedong, Adolf Hitler, Benito Mussolini, Barack Obama are the true devils of modern history.
Goldie
October 20th, 2009
9:58 am
This economy is so effed-up today because of the fallout from the past 20 years of Reaganomics and turning Wall St. and the banks loose to do what they damn well please! It wasn’t until Reagan that greed became “good” and now look what we’re facing!
Grumpy
October 20th, 2009
9:58 am
Obama and co. have no one to blame but themselves for those bonuses. They bailed those clowns out instead of letting them fail.
TnGelding
October 20th, 2009
10:00 am
Vinny
October 20th, 2009
9:43 am
The government borrowed or printed the money. Taxpayers weren’t even paying enough to fund the government before TARP and the stimulus, and didn’t want to even pay that.
Normal
October 20th, 2009
10:00 am
Aloha Gator
October 20th, 2009
9:58 am
Bless your heart…
Mrs. Godzilla
October 20th, 2009
10:02 am
Grumpy
can we let the health insurance companies fail?
USinUK
October 20th, 2009
10:02 am
“They bailed those clowns out instead of letting them fail”
yeah. because letting Lehman fail didn’t have any repurcussions …
TnGelding
October 20th, 2009
10:04 am
Grumpy
October 20th, 2009
9:58 am
The Bush administration invested in them out of necessity when nobody else would to stop a worldwide collapse of the banking system. The execs should show a little respect, common sense and humility until things return to “normal.”
pat
October 20th, 2009
10:04 am
The stimulus enabled this. Why, if you hate these guys so much, did you give them billions of dollars of tax payer mula? It is governement intervention that created this train wreck.
We evil supporters of evil businesses where more than content to let these banks and lenders fail. You just had to bail them out, now the joke is on you.
Next time let them fail, the result will be much better and you will fill the homeless shelters with the people you supposedly hate the most.
If you were going to do a bail out I would have been content to give all the money that was given to these big businesses, to teachers.
Nothing Is Free
October 20th, 2009
10:05 am
USinUK
**oh, and one more thought – until the US changes its effed-up way of funding schools based on property values, then you’re always going to see teachers on the firing line during a downturn**
So I’m gone for a minute and some people start sounding sane. Must be the weather kicking in those little do-hickies in the noggin.
The funding system is the number one problem in our country. If we equalize the schools, we can pretty much fix America in 12 years. And it wouldn’t be just a matter of equal money going to all schools. Some really bad schools would cost multiples of other schools to catch up, but good, SAFE schools is so badly needed.
My generation is pretty much done. Not many people in their fifties will change direction, but all those kids really need to have a world to look forward to.
I saw Slumdog Millionaire last weekend, so I’m in “kid” mode
USinUK
October 20th, 2009
10:06 am
pat –
“The stimulus enabled this. Why, if you hate these guys so much, did you give them billions of dollars of tax payer mula? It is governement intervention that created this train wreck.”
stimulus money had nothing to do with bank bonuses.
Mrs. Godzilla
October 20th, 2009
10:07 am
pat
can we let the health insurance companies fail?
Jackie
October 20th, 2009
10:07 am
@Grumpy
If you will recall, the Bush Administration put the TARP initiative and money in place.
I do believe the Congress did not thoroughly review and/or understand the problem. We know the situation was dire, but, the depth and breadth of the problem still remains an issue.
pat
October 20th, 2009
10:08 am
Mrs. Godzilla, any company that does bad business deserves to fail, period. That is business, that is capitalism. Capitolism isn’t the problem here, it was government intrusion that caused this problem. Had the governement stayed out of it, nary a cent in bonuses would be paid…More likely they’d be getting unemployment instead.
USinUK
October 20th, 2009
10:09 am
NiF –
“Must be the weather kicking in those little do-hickies in the noggin.”
the only thing our weather is kicking in in my noggin is hibernation mode …
but, it’s good to know that you and I agree on something !!
pat
October 20th, 2009
10:10 am
UsinUK, you did remember that Sen. Dodd put the language in the stimulus that made it the LAW that the bonuses were to be paid according to contract? It would have been ILLEGAL to not pay the bonuses, obama made sure of this when he signed the bill into law, sight unseen.
Mrs. Godzilla
October 20th, 2009
10:11 am
pat
so we should support a public option right?
cause if health insurance companies can’t compete…….
Redneck Convert (R--and proud of it)
October 20th, 2009
10:12 am
Well, I almost got fired this a.m. when I told the boss I wanted to work on the Bookman plan–take Friday afternoon off and don’t do no deliveries until about noon on Monday. But he let me go with a warning.
Anyhow, when a teacher can show me she can drive a race car good as Junior I’ll be all for paying her big bonuses and a huge salary too. And these Wall Street folk earn ever dollar they make from stealing all that money. Most of the dumber ones that try it wind up in prison. It takes real brains to get filthy rich.
I guess people like Bookman got Wealthy Envy bad. If they want to make some real money they can go out and make up a phony product and sell it and get the guvmint to pay them billions when they go bust. So the people that bought it and the guvmint both end up holding the empty bag. But no, all people like Bookman want to do is tear other people down. That’s what’s wrong with America today. Even the banks know you got to hire a good bank robber to keep a bank robber from robbing you.
Have a good day everybody.
USinUK
October 20th, 2009
10:13 am
pat –
“Capitolism isn’t the problem here, it was government intrusion that caused this problem. Had the governement stayed out of it, nary a cent in bonuses would be paid”
puh-LEEZ … if the government had “stayed out of it”, as you say, the entire global economy would have collapsed. you don’t seem to comprehend the extent of the collapse of the credit market last fall. this isn’t 1 or 2 banks going under – this is EVERY major international bank going under and dragging EVERY major 401K, EVERY insurance company and EVERY pension fund with it … and that’s just the beginning.