When it comes to excessive executive pay I am as disgusted as the next person, but for the government to set the rules is too invasive in my opinion. The problem as I see it is that like so many of these types of government interference is where do you draw the line? In a free market society the government should not tell private companies how to run themselves. That is the job of the management, the board of directors and the stockholders (if the company is publicly traded).

Granted the system has problems, but in the end companies that pay executives insane amounts of money usually end up bankrupt or finally end up changing the pay anyway. If you think about it, many of the financial institutions that were paying execs dump trucks full of money went belly-up. The government just happened to say "that's OK here's some bailout money for you." If we had let them fail, it would have sent a stronger message that if you want to stay in business, run a tight ship. The automotive industry is another example. I doubt they will be paying their CEO's anywhere near the money they were before the fall.

As an owner of companies we give bailout money too we should have a say in executive pay as well as other key areas, but only because we the taxpayers are major stockholders.

This article outlines the debate. 

For the past several weeks we have been hearing about the specter of GM and possibly Daimler-Chrysler filing for bankruptcy protection. While this has certainly been precipitated by 40% drops in sales over the last few months, it started years ago.

Having once been in the retail side of the automotive business I follow it a bit and so I can say with confidence that this was inevitable even without the current deep recession.

For at least three years now, all three domestic automakers have been losing billions each quarter. Occasionally they would show a slight profit but for the most part they have all been bleeding cash for several years with no end in sight.

One has to only look at the structure of these behemoths and the products they turn out to see that. Add in the volatile price of fuel that threatens the one line of vehicles they were making money on (SUV’s and trucks) and you can see the cards are stacked against them.

High labor costs, high material costs, too many models that don’t sell, and probably the most foreign competition of any major product that is still manufactured here all spell doom for the auto industry as we know it.

The business model that made Detroit the power it once was worked for about 60 years. That model does not work today. Changing decades of habits like short term profitability and sloppy business practices is a difficult thing to do and happens slowly. In this case too slowly to survive.

Would the auto makers have been able to make changes and emerge as a leaner, more responsive industry had the current recession not decimated sales? Maybe, but I doubt it. I think what will happen is that like so many other industries, once the recession is over, we will buy most of our cars from overseas and a handful of smaller manufacturers making limited models will emerge. Unfortunately, the jobs that are lost will not.

We all know that used car salesmen and lawyers are typically at the top of the list of people we don’t trust or like and I now am adding banks to the list.

We all know their tactics for providing low/no service and the fees they charge for everything (a rumor that pay toilets are coming to a bank near you anyone?).

But now this article comes along and we see how the banks are even more sleazy than ever.

And what about all the bailout money? We still don’t know what the banks did/are doing with that.

I hope our new President can get the much needed reform in this area done quickly.

Like many of you geeks out there, the temptation to swoop in and take advantage of the liquidation bargains in great but beware.

It is very typical for the liquidators to jack up retail prices before giving the discount, thereby making what seems like a good deal not a good deal.

This is especially true on discontinued and old items like video games etc. Be sure and know the going price of whatever you are buying before you head to Circuit City. One example was the Xbox360 game Bioshock. When the first round of closings occurred a couple months ago, I had just bought the game from another retailer for $30 – a just reduced price since the game was reaching the end of its cycle. We stopped at Circuit City an they had the game listed as retailing for the original $59 price with a 20% discount. That would mean paying $48 for a game selling everywhere else for $30.

This is a common practice so watch out.

This article on the CNN website discusses New York City's pending budget crisis -

"As for the city, Bloomberg said that even if he rescinds the 7 percent property tax cut that was approved a year ago, the city faces budget shortfalls of $5.2 billion in fiscal year 2011 and $5.1 billion in fiscal year 2012."

The City of Chicago has also raised the specter of layoffs and other cuts to make ends meet and many states have cut back on state police patrols and the like because of high fuel prices.

It should be no surprise how the governmental (at all levels) budget process is like many American households - no savings for emergencies. Governmental budgeting almost never includes a funds that can be tapped when things get bad or unexpected costs occur. How do I propose that cities, states or even the Federal budget makers solve this problem? Easy. Just like a common sense household should, you take 10% of your income and put it aside for emergency use. Ah, but what if I can't afford 10%? Then you go without something.

For decades we have become a nation who turns luxuries and nice to have into "necessities". That has got to stop. For the family household, that means no cable or no Xbox or not going out to eat every weekend or a cheaper car or public transportation to work if possible or a host of other things.

For governments that means fewer jobs padding the payrolls, fewer perks for higher-up officials and a cutback in services. That struck a nerve didn't it? Well buck up! We have come to expect way too many services from our governments at all levels and many of them are not needed, or could be more efficient. I know these will not be popular but if every budget had a 10% cushion you wouldn't see an article like this when times get a little tough.

You may, of course, disagree.

I was impressed when I first heard T. Boone Pickens talk about wind power replacing natural gas for electricity generation and using the freed-up gas for transportation. I had not realized how much natural gas went into electricity production. What I like about the plan is that it addresses transportation which is where the vast majority of the imported oil goes.

All the politicos are focused on nuclear and other ways to generate electricity as the answer but none of those address a substitute for oil in cars and trucks. The beauty of Pickens' approach is that the technology is available and in use and, with the way natural gas pipelines are spread around the country, tapping them for refueling stations would not be difficult.

You ca read an interview with Pickens here.

On the way back from the farm today we stopped in Springfield, Il for gas and to eat. The Gas station was busy and we had to wait behind an SUV with a BAB (Big-ass Boat) hitched to it.

They were filling the boat tank and when they left we saw the tab for the day's fun - $151.00. Yikes! To each their own.

While it is encouraging that gas consumption is down and oil prices have dropped in the last few days, I am not getting my hopes up that this is a trend. All it takes is one hiccup and oil will be on the upward spiral again.

The global market is not easing and will in the end drive prices up. IMHO

I read this article to see what it said Obama said about gun control. As with many articles of this type it gave only spotty information. But what concerns me is the comments about how the NRA and other interest groups are going to run campaigns against Obama and McCain.

You see this is what is one of the things wrong with presidential elections in this country. Instead of the candidates running positive ads trying to get their points across, they will have to spend money counter-acting the blitz of ads these well funded groups will splash across our TV's night after night.

I support the right of free speech and because of that I would oppose any legislation to inhibit these groups but I wish that they would focus on other things than this. Realistically, it is the Congress or state legislatures that will enact gun control or other laws that affect members of the NRA and other special interests. They lobby these groups and they should be free to try to convince them to see their point.

I just hate seeing the message of the candidates drowned out by these ad campaigns. 

This is may be why Obama has passed on public campaign financing in order to spend more - it takes a lot of money to combat this stuff. 

Interesting article on the cost of making money - literally. This could be a good time to eliminate the penny as well as get rid of the dollar bill. Of course as stuck in our ways as we are it ain't gonna happen.

I feel the pain every time I fill the van up as I am sure many of you do. But it could be a lot worse. Of course it could be better - as in .12 gal in Venezuela.

Reminds me of the old bromide - no matter good or bad off you think you are, there's is always someone better off or worse off.

I am all for corporations making a profit, but this is too much.

The problem is that the oil industry is so vertically integrated that the same company makes a profit each step of the way so they can pay what ever price the supplier (owned by the parent company) charges. In the end the final price paid by the consumer has all the profit built in.

The only way to stop high prices on oil products would be to insert non-oil company competitors into the mix. That is not going to happen because of the capital requirements and the risk involved. I also can see the oil companies refusing to supply these competitors with product at that level of the supply chain.

Samsung chief stands down; sorry for tax scandal

Just in case you thought the West had a corner on the cheater's market. I knew Samsung was a huge company but I had no idea they accounted for 20% of South Korea's total exports - WOW.

"US Airways says it will begin charging passengers extra for an aisle or window seat on some of its planes."

Will $5 per aisle or window seat really make that much of a difference? And since 2/3 of the seats on most planes are aisle or window, why not just raise fares by $5 and make it easier on everyone.

A truly dumb idea.

http://www.cnn.com/2008/TRAVEL/04/17/usairways.charges.ap/index.html?eref=rss_topstories

After reading this article I came away with these thoughts:

-Using food grains to produce biofuel is a bad idea - use switch grass or some other non-food plant. Better yet, let's get smart about fuel usage and reduce consumption.
-Commodity market speculators are greedy SOB's who add nothing to the mix other than lining their pockets by taking advantage of a bad situation.
-Subsidy programs don't work (in anything - not just food)
-Why not let the farmers who grow the food sell it to those who use it at a fair price without all the middle men who jack the price up?

This is an example of how politics and government can screw up something simple like raising food.

This definitely comes under the heading of not a news flash.

This is yet another in a string of CEO's and other top executives being rewarded for screwing up. Countrywide has taken the majority of the blame for the subprime mortgage crisis and with good reason - they made loan to people who should never have gotten one and continued to do it until they couldn't get any more money to lend.

They were just one of many lenders who were handing out loans like free samples on a street corner, so to say they single-handedly caused our current credit mess is certainly not fair. That not withstanding however, Sambol was at the helm while this was going on and he could have taken measures to cut back on these loans and find other ways to increase the profitability and stability of the company - he didn't. And now Bank of America who is jumping in and buying Countryside is going to not only keep Sambol, but pay him more money than before!

I cannot believe BofA is unable to find a better candidate to run their mortgage business than this obvious mis-manager. How long is corporate America going to keep rewarding failure?

Look at auto industry - they lose billions each quarter and the CEO's make millions - I guess this will stop when foreign companies finally control U.S. corporations and kick these guys out the door.

I have always had a problem with these payday loan stores because early on I knew they were charging usury rates. It seems those who can least afford them are the ones who use them. When one opened in the small town near where the farm is I knew they were not going away.

I hope this trend continues because in the long run, the people who get sucked into these will figure out another way, just like they did before they had these shark-infested places to go.

I could not stop shaking my head (the rattle is deafening) after I read this. I mean three airlines in Hawaii and not one of them makes money! What the hell was Mesa Air Group thinking when they started up as the third carrier? Did they really think they could drive the other two out of business and then set their own price? Even if they did, someone would come in after them and do it to them.

If I was a stockholder in any of these companies I would be diving for the exit. What is even sadder is that these companies can jump in and out of bankruptcy like changing socks - there is definitely wrong with that.

This is just another example of why you need to be an educated consumer before signing ANY paperwork involving financial commitment. Some salespeople and brokers will say what ever it takes to get the deal done. To trust them is like putting a gun to your head and plating Russian roulette.

Read the contract before you sign, and make sure you have someone with you who can help understand what you are signing of you are not capable yourself. If you don't like what you see, walk away.