Posts Tagged ‘salaries’

The problem with banker pay

21 September 2009

Krugman’s latest column is a gem.  The problem, he says, is not the level of financial-industry pay but its asymmetry — lavish rewards for short-term profits, no responsibility for long-term losses or systemic damage — and the perverse incentives that result.  Once again, it’s a case of “privatize the profits, socialize the losses.”

Judging from the quote from President Obama, it doesn’t look like this administration is going to do anything about it, though.  Sigh.