Wednesday, October 21, 2009

Obama's Pay Czar Working the Market

The stock market collapsed in the last hour of trading Wednesday when this news came:

3:26 PM The government will reportedly order deep pay cuts from the biggest bailout recipients in a plan the Treasury will announce in the next few days. The seven companies that got the most assistance will have to cut cash payouts to their top 25 execs by an average of 90% - to be replaced by stock that they'll be restricted from immediately selling - and cut their total compensation by 50%. [from Seeking Alpha Market Currents]

Dow Jones Industrial Average went from 20 points gain to 80 points loss (100 points reversal) in less than 20 minutes on a heavy volume.

If this isn't the blatant government intervention in the market, I don't know what is. Good job, Mr. Feinberg. Lucky you are not accountable to anyone but your President.


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