Status Quo for Financial CEOs.

Robert Reich, former Labor Secretary, for President Clinton predicts that CEOs of financial and other corporations receiving taypayer bailout money will not make the necessary structural changes expected by Congress and the American people. See http://robertreich.blogspot.com/2008/12/debate-to-come-over-wall-street-autos.html

Hopefully Reich is wrong but sadly I suspect he is probably right in his assessment that financial institutions and certain other corporate CEOs will continue with the status quo.

As a long-time investor in stocks I am appalled by the flagrant mismanagement of owner's equity that has taken place by cavalier CEOs and other "trust" custodians of some of our largest and most trusted corporations, specifically those in the financial sector. I am also appalled by the excuses being made by high-paid fund managers and business anchors with their trite comments and celebratory references to "Milton Friedman's" theory of free market capitalism. Free market capitalism does not exist and never has. Taken to its truest form it runs counter to democracy. The moral hazard clause is their catch all answer to the inevitable greed and corruption that quickly creeps in when the fox is left guarding the hen house and as we have all seen the moral hazard clause has now been deferred to us, the taxpayers.

Unlike "the most productive members of society," aka CEOs and other corporate rock stars, many of us have not bought more house than we can afford, leased cars we had no business driving nor lived beyond our means. Instead we acted responsibly and funded our own pensions in 401k and 403b plans (with help from financial institution lobbyists who helped to dismantle the traditional pension plans and convince the government to endorse the alternative through complicated tax schemes), saved for our children's college, set up health savings and daycare accounts only to have the funds stolen and/or squandered by the very people who had a fiduciary responsibility to act appropriately with their management.

I am outraged! I certainly hope that our new president is not inculcated by the very people that created this mess and instead is able to transcend "the system" and work for Main Street.