Yes, It’s Called Capitalism

Barney Frank, the man who staunchly opposed reigning in Fannie Mae and Freddie Mac for years, and claimed ”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” has now proposed that no one on Wall Street should receive a bonus this year. No one. His rationale:

“There should be a moratorium on bonuses,” Frank, a
Massachusetts Democrat, told reporters yesterday in Washington.
“They have a negative incentive effect because they are the ones
that say if you take a risk and it pays off you get a big
bonus,” and if it causes losses “you don’t lose anything.”

As to the first part, well, he has a point- in this crazy capitalist system we have, if you take a chance and it pays off, then you get rewarded. It’s pretty much the case in any industry. And that is a bad thing because…???

But it’s the second part that is really absurd. Someone should tell all the people who have lost their jobs in the last few months (or seen their portfolios demolished) that Barney Frank thinks they really haven’t lost anything.

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