Bad VeePee But Great Cabinet Choice

Barack Obama demonstrated wonderful good sense for his own security by whom he chose and didn't choose for Vice President.

Similarly, let us presume that Obama has been informed about Hillary by Lyndon Johnson's rationale for keeping J. Edgar Hoover at the FBI: "Better to have him inside the tent pissing out, than outside pissing in."

Public Corporations Inquiry

Posted as submitted on 10-17-08 by Ombudsman

Establish a special prosecutor to investigate if there was collusion between and among different Boards of Directors to give each other bonuses. "You vote for mine and I will vote for yours."

This report shall be available within 15 months.

Public Corporations

Posted as submitted on 10-17-08 by Ombudsman

The days when the CEO built up the corporation so that he could hand over a larger and more prosperous one to his children are over.

The CEOs of today are trained to worry over this year's bottom line, not future ones, because the current one affects his bonus and ability to skim the corporate coffers. His contract won't cover following years.

Thanks to a variation of what Mario Puzo said in The Godfather; Wall Street has a new program:

• Steal $50 -- petty larceny.
• Steal $50, 000 -- grand larceny.
• Steal $500, 000,000 -- an astute financial manipulation.

Now that the background has been established we can proceed to changes. No commission is needed for this problem: unbridled greed and avarice.

The total compensation for the top person at any public corporation shall be limited to 30 times¹ the average compensation of salaried non-management personnel.

Under our system, the feds cannot dictate to the Board of Directors what to pay the top dog. However, the feds do have the authority to tax. Any compensation above the threshold shall be taxed at the rate of 95%. For computing total compensation, anything of value shall be included. This includes, but is not limited to event tickets, vacations, bonuses, golden parachutes, private use of corporate jets at charged cost of jet, not cost for public ticket for the same flight, etc.

It is the intent of this proposal to force the Board of Directors to say to themselves, "we will not pay these taxes to the feds. We will take these funds and:

• Modernize the plant.
• Establish sinking funds to pay for future modernizations.
• Reduce the price of the product.
• Increase the pay and/or benefits for the employees.
• Or -- horror of horrors -- increase the dividends to the stockholder.

The 95% tax rate is no doubt onerous. This is not unprecedented as they have been this high before. However, this time there is a difference. This time there is a way out. When the corporation pays these taxes -- shareholders take note -- it is because The Board of Directors chose to pay them.
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¹ 30 is subject to review and study; used here to demonstrate philosophy being suggested

Wall Street Inquiry III

Posted as submitted on 10-17-08 by Ombudsman

Appoint a special prosecutor to determine if criminal activity was taking place during the collapse of the financial markets. This inquiry shall include mortgage, stocks, bonds and any other financial instruments used.

This is a parallel activity and the report shall be returned within two years.

Wall Street Inquiry II

Posted as submitted on 10-17-08 by Ombudsman

The commission of Wall Street Inquiry I shall continue its work to return a report, in 15 months, of recommendations for new rules and regulations to prevent a recurrence.

It should be abundantly clear by now that Wall Street, CEOs and Congress, by themselves, will not do the "right thing." It is very difficult for Congress to do the "right thing" because they do not know what it is! This is obviously not 100% across the board. Not even Ivory soap is 100% pure.

Wall Street Inquiry I

Posted as submitted on 10-17-08 by Ombudsman

Appoint a commission of highly qualified individuals to highlight those practices that led to the current disaster. The group shall consist of lawyers, CPAs, economists, CEOs and money managers.

The requirements for selection shall include, but not be limited to:

• No previous or present conection to Wall Street or Washington politics.
• Never having been a lobbyist or affiliated with one.
• No conflict of interest, either real or apparent, through family or friends.

Task:
Report back in four months what in their opinion caused and/or facilitated the disaster. The causes specified may include anything that, in their opinion, facilitated the collapse. They may include, for example, philosophies, rates, regulations, memos of understanding or any other instrument, procedure or instruction that was used.

The intent of this report is to identify only, not to suggest changes.

Fighting Slogan

We didn't leave the Republican Party, the Republican Party left us.

This variation on the cool old quip by Ronald Reagan was suggested to me by Belmont Clubber Karen. It captures the situation that traditional conservatives find themselves in as McCain and cohorts have moved left.

If conservatives want to take back control of the GOP they need to rally locally, and this slogan could provide them with a very good focus.

I've more about how and why this intraparty revolt is absolutely necessary, but I will elaborate only when somebody asks.