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Published on March 18, 2009 By SplitPeaSoup In The Media

The news, as of late, has been inundating the impressionable American public with inflammatory posts. That's right. The news is trolling. Recently, a shady insurance company called AIG announced that they would be giving several dozen CEOs, some of whom no longer even work for the company, million dollar bonuses.

Ok. I am not entirely apprised of the situation, but I can see how a purportedly shady company might abuse bailout money.  However, soon after that, the news went after a new company, Fannie Mae, which will also be giving executives hefty, although not obscene, bonuses. Fannie Mae claims these bonuses are to retain valuable executives. Well, I am not entirely sure I distrust that.

Executives are like the major league baseball players of business. The reason they are filthy rich is that they are amazing at what they do. The current economic crisis is more a problem with America being a credit nation than executives not doing a good job. Japan, a nation that loves to save, is actually benefitting from current events.

While it may seem unfair that they receive such huge sums when so many people are struggling, the fact remains that there really are no people to replace them, not who would do the job for any less. For whatever reasons - genetic, cultural, socioeconomic, chance - executives are better than you. In a perspective loaded sense, they do not "deserve" their money. But then, you don't deserve not starving on the streets of Kenya.

That is how it is until someone does something about it. I am pretty sure denying executives "retention bonuses" will not eliminate the problem. It would probably just put Fannie Mae in an even worse situation.


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