Five Reasons Not to Pass the Bonus Tax
I interviewed a retired hedge fund manager who voted for Barack Obama about the bonus tax last week. Here's what he said: Everyone is outraged by AIG’s actions, but the congressional response is problematic for the following reasons.
1. It is effectively revisionist history and makes it impossible for market participants to play by the rules as they can change, not only on a moment’s notice, but magically retroactively.
2. Bonuses such as those paid to Merrell Lynch employees in December would not be subject, but those banks such as BofA and J.P. Morgan, who pay on a February cycle would get hit. It's akin to performing delicate surgery with a hatchet and will unfairly blanket countless individuals who were in no way associated with AIG.
3. It will disincent firms that need capital from asking for government assistance.
4. It underscores concern in the private sector that we’re now living in the Wild West, which will slow private sector participation for fear of the government changing the rules as we go.
5. It will push talent out of the financial sector at the very time we need the best and brightest to navigate the storm.
Harvard psychologists discover why we dislike the people who deliver bad news.
- A new study looked at why people tend to "shoot the messenger".
- It's a fact that people don't like those who deliver them bad news.
- The effect stems from our inherent need to make sense of bad or unpredictable situations.
He reminds us that meaning is wherever we choose to look.
- Alan Watts suggests there is no ultimate meaning of life, but that "the quality of our state of mind" defines meaning for us.
- This is in contradiction to the notion that an inner essence is waiting to be discovered.
- Paying attention to everyday, mundane objects can become highly significant, filling life with meaning.
If life exists on Mars, there's a good chance it's related to us, say researchers.
When MIT research scientist Christopher Carr visited a green sand beach in Hawaii at the age of 9, he probably didn't think that he'd use the little olivine crystals beneath his feet to one day search for extraterrestrial life.
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