USSA

Is USA becoming USSA (*), ever more by the day ?

President Obama and his team keep using words like "shameful" that bonuses are being paid and "will do everything we can to get the money back".

However, this raises many questions :

1. Surely, in a Capitalist Democracy Model, the Rule of Law is paramount. What happens to the validity of contracts ? How enforceable are they if the "Rules of the Game" can be changed ? Is that why the US Congress is changing the law to levy heavy taxes on bonuses ?).

2. Would foreign nationals, organisations, corporations and governments think twice or more than twice before entering into a contract with a US entity -- even one that is not, for the present, today, "assisted" by the US Government ?

3. How will these organisations retain talent ? What happens to the morale of the employees ? Are these employees critical to the organisation returning to a sound footing and the U.S. Government receiving it's money back ? What is the legal and financial position if such employees quit (whether out of disgust or personal stress) ? Or are appeals to "patriotism" going to be made very soon ?

* :  United States of Socialist America  

The Meltdown Continues

Citigroup's stock has fallen below $1.50.

Think of what this is doing to the morale of employess there. This in addition to the 75,000 layoff/downsize figures (whether actually exited or in a business unit that is sold) last year.

It isn't just Citi that has "got the new reality". It is all manner of people who invest money, trade money or save money. We wouldn't be returning to the era of "money creates money without effort" jobs and organisations. Hard work and productivity measured by material output and/or real customer support (in services industries) will mean much more than amounts adjusted by derivatives whose pricing has, at the most, been nebulous.