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Banks Chastened?
The Economist Intelligence Unit, via Free Exchange, on whether the rest of American mondobanks will report lower compensation-to-revenue ratios this week, as JPMorgan did the last:
[. . .] a lower share of pay in relation to revenues may not tell the whole story. Compensation at banks has risen moderately as a share of revenue in recent decades. But when loan-loss provisions are taken into account, recent pay packages appear a lot more generous. According to FDIC data, compensation as a share of revenue at commercial banks is the highest it’s been in nearly 60 years, after accounting for provisions.
Also: the analysis and adjoining graph apparently consider only the cash portion of compensation. Which leaves another part out of the story. Take this, from the JPMorgan story linked above:
A J.P. Morgan official later clarified that “increasing the
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White House Defends Treasury Sec.: Geithner ‘Helped Steer Economy Back From the Brink’
Reuters – White House says Geithner saved U.S. economy
WASHINGTON (Reuters) – The White House on Thursday voiced its backing for U.S. Treasury Secretary Timothy Geithner after he endured a grilling before Congress over the costly bailout of insurer AIG, and one lawmaker urged him to resign.
“Secretary Geithner has helped steer the American economy back from the brink, and is now leading the effort on financial reform,” said White House spokeswoman Jennifer Psaki.
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Obama Admin. Looks to TARP to Help Cut Deficit, Mollify Debt Hawks
WSJ – White House Aims to Cut Deficit With TARP Cash
WASHINGTON — The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.
The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program — the amount it expects to lose — to as little as $200 billion from $341 billion estimated in August.
The idea is still a matter …
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Does America Need Domestic Autos?
The story of the American automobile industry – the Big Three – in the second half of the twentieth century has not been a pretty one.
During the late seventies and eighties, the domestic auto industry suffered severe losses, while foreign competitors gained larger and larger percentages of the American auto market.
With severe losses came severe job losses; since the 1950’s, unemployment rates in Michigan have consistently surpassed national averages in times of recession due to its floundering auto industry. For instance, 1982 unemployment rates averaged around 15 percent, 60 percent above the national average.
These job losses have continued into the new millennium. Michigan suffered six straight years of job losses through 2006, and many of those losses were in manufacturing, 70 percent of which were in the auto industry. However, Americans continue to reminisce about the domestic auto industry’s glory days, when manufacturing jobs could provide a good wage and …
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MLK's Example Apparent In Peace Movement
As protest groups target a broad spectrum of issues in their demonstrations, they try to remind people that Dr. Martin Luther King, Jr. did the same thing.
Protesters call attention to King’s post-1967 platform that spoke out against not only racism but to the Vietnam War and world poverty. The most recent example is the march on Wall Street that took place on April 4, highlighting the anniversary of King’s assassination.
In 1967, King’s speech at Riverside Church in New York City focused on his growing awareness of the violence in Vietnam and the rising military draft rate of African-American poor.
“I knew that I could never again raise my voice against the violence of the …
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