Daily Leson from Life 30 January 2009

"January 30, 2009, 11.58 am (Singapore time) - Obama scolds Wall St executives over bonuses


WASHINGTON - US President Barack Obama on Thursday chastised Wall Street executives for taking big bonuses at a time when the financial system is on the verge of collapse.

Mr Obama, his vice president and chief spokesman all fired off statements voicing outrage after the New York comptroller reported US$18.4 billion in 2008 bonus payouts at a time when taxpayers' money was shoring up a financial system in crisis.


'That is the height of irresponsibility. It is shameful,' Mr Obama told reporters while meeting new Treasury Secretary Timothy Geithner and Vice President Joe Biden.

White House spokesman Robert Gibbs said: 'We're not going to be able to do what is needed to be done to stabilise our financial situation if the American people read about this type of outrageous behaviour.'


In office nine days, Mr Obama said he and Mr Geithner would send a message to Wall Street that 'there will be time for them to make profits and there will be time for them to get bonuses. Now is not that time'.

'Greed,' Biden saysInterviewed on CNBC, Mr Biden said: 'I mean, it just offends the sensibilities ... I do know what they're thinking. And they're thinking the same old thing that got us here - greed.'


'Obama is now the head of the compensation committee for banks, and anyone on Wall Street who ignores the changed landscapes does so at their peril. Beneficiaries of bonuses have no standing in arguing for money now, and they have no natural supporters, other than their own families.'

In a meeting with congressional leaders last Friday, Mr Obama criticized companies receiving bailout money who had been 'renovating bathrooms or offices'.


That was a reference to reports that former Merrill Lynch CEO John Thain had spent US$1.2 million fixing up his office last year, including US$35,115 on a commode and US$1,405 for a trash bin. Mr Thain subsequently wrote to Merrill employees that he planned to reimburse Bank of America Corp (BOA), which acquired Merrill and then ousted him. He called the spending 'a mistake in the light of the world we live in today'.

On Tuesday, Citigroup, cancelled plans to buy a US$50 million executive jet after a White House spokesman said Mr Obama did not believe using private jets was 'the best use of money' by companies receiving taxpayer assistance. Both BOA and Citigroup have been recipients of massive government bailouts.

Auto executives learned in November that lavish behaviour was unacceptable in today's economic climate when they flew in private jets to Washington to plead for bailout money. "



Today's quote is a fairly long one. I feel it is important for the readers to learn that some people are still doing stupid thing in this dire hour!

Lessons for me are:

1. people who have gotten used to certain lifestyle find it VERY hard to get back down-to-earth! Their sense of appropriateness has detached from the ordinary mere mortals!;

2. hence it is important for leaders to be acutely aware of this common fallacy or weakness of human being, with this awareness, hopefully they will CONSCIOUSLY act prudently to avoid such stupid and offensive behaviors. They will NEED to cultivate critics that will tell them off whenever they see behaviors that are immoral and downright disrespectful of the ordinary folks who work for or with the leaders!;

3. one of the surest way to wake those foolish people up is to be very vocal about your displeasure and indignant and exert your right forcefully! Sometimes, the 'privileged' got so used to the 'entitlement' that they simply could not comprehend what the 'outrage' is all about!! So, speak up whenever you see injustice or marginal immoral act! Notes: for me, paying yourself too much is also an unethical and immoral behavior!!

May the critics continue to voice their shock and repulsion whenever they see immoral and/or irresponsible behaviors!!