Tuesday, November 3, 2009

More on the Hogs at the trough

Long ago the tipping point between any sense of fairness or market forces versus sheer greed in the CEO club was passed and executives stuck their snouts deeply into the hog trough. Today's WSJ online has another example.

"Pensions for top executives rose an average of 19% in 2008, with more than 200 executives seeing pensions increase more than 50%, according to a Wall Street Journal analysis. The executive-pension growth stemmed partly from generous pension formulas, which are based on executive pay, according to the filings. Also adding to the pension jumps are arcane techniques that have received little scrutiny ... "

"The growth of such supplemental executive retirement plans, or SERPs -- which can be worth tens of millions of dollars to executives -- largely has been overlooked amid a backlash against executive pay, particularly at banks and other companies receiving taxpayer bailouts. "

The article is full of examples of CEOs getting double digit million pensions. But anyone with a memory remembers that for the last decade, corporations have cut employee pensions and reduced sharing formulae and pushed them into 401K plans. Why isn't all the deferred compensation in stock considered as the CEOs pension ? Why do those favored princes and dukes get a double dip ? The answer is, of course, the CEO club protects its own and they aid and abet each other's feast in the trough. The paid "consultants" give the CEOs cover to deceive the stockholders, who often get no vote at all, thanks to the SEC.

Corporations grossly overpay the executive suite. And likely underpay the common man. Those who make the rules - the ruling classes of the rich and powerful - have gone too far and the tide needs to go out on executive pay.

This endless greed and unrepentant looting of the corporate treasury by the hogs at the top has to somehow end.

Actions

Despite rather good economic news worldwide, markets seem to be correcting. Perhaps those who anticipated this good news took or are taking profits [as I did do, in fact . Or the bears are getting bolder and increasing their positions. And insufficient real, long term buyers exist to cushion the decline now. Most likely, it's all three as recent post titled "How the World Works"emphasized: 'some A and some B' is the general philosophical reality of the workings of the world.

My tactics are unchanged. I an doing nothing, but am thinking about stocks to buy when the selling dries up.

World Series

Back to the Bronx as the Phillies hang on. Yankees lead, 3 to 2. Go Yankees !!!!!!!!!! Smash those Phillies !!!

Word of the Day

"Eremite" - noun [$10] a Mencken word
Eremite means a hermit or recluse (especially Christian).
Sentence: [from "The American Language" by H. L. Mencken, page 557] "Everyone, including even the metaphysician in his study and the eremite in his cell, has a large vocabulary of slang ..."

46 comments:

Bunkerman said...

Reuters.com reports the prices of investment-grade commercial real estate rose more than 4% in the third quarter, possibly signaling an end to the sector's year-long downward spiral, according to an leading property index released. The 4.4% third-quarter increase in the MIT Center for Real Estate's transaction-based index (TBI) index is the first positive price change in the index in more than a year and the largest increase since the market downturn began in mid-2007

Bunkerman said...

uh ... were not some pundits, etc. saying it was going to get worse ?

Bunkerman said...

Burl Nrth Santa Fe: Berkshire Hathaway to acquire Burlington Northern Santa Fe Corporation for $100 per share in cash and stock (76.07 )

wow !

Bunkerman said...

talk about putting the $ where the mouth is re recovery.

Uh .. Buffet is a "real' buyer

mfl59 said...

Bob what a call....this might be better than the BIDU call...

"something is up with BNI...I am going to take a large chunk on the close"

How does he do it?

Danke vielmals Bob!

Spin-em said...

CANT BELIEVE IT!!!......THANK YOUUUUU BOBBBAAAAAY!!!!!

Spin-em said...

altered word of day (slang)

"MERNemite

Bunkerman said...

lol sunboy. Good one.

Frosty said...

warren a real buyer...Bunky in a foxhole...confused here.

Frosty said...

JPM downgrades semi's...they must read this blog..."margins scream peak semi cycle"

Frosty said...

Bunky...we are stacking tinder for an opx blaze...perhaps the eminiking can shed some light on the subject?

Bunkerman said...

I don't have a good idea of what sector to buy here; perhaps some of my prior play names, calls again. Noodling ...

Have also been considering buying S&P calls before the jobs number ...

thinking.

mfl59 said...

buying calls before an employment number? John Bogle would vomit...

Spin-em said...

may I suggest Discount/Variety stores for 2010?..lol

Bunkerman said...

haha ...

Bunkerman said...

I'm not sure the selling has dried up yet.

Frosty said...

Bunky...your heros painted a fine ISM #, why stop there ie friday jobs...should we get the wwwoooosshhhheerrrrr reaction, think of betting the yo and all the hard ways here..."Noodling"

mfl59 said...

Bunkerman nice article today on the front page of the USA Today sports page about an MIT football player....

Spin-em said...

haha???....(index card)

Bunkerman said...

I think I remember they reinstituted football a few years ago at MIT.

Spin-em said...

psssssttt...cement

Frosty said...

"Industry is building inventory, but transportation data show that the goods are not yet moving in concert." ...I will forward bill king a link to the bunker...I don't think he went to MIT.

mfl59 said...

My guess is that Bud comes out guns ablazing once his boys clinch....

Bunkerman said...

Thanks spin, I do like a couple of those "blockstox". Fits my MT, too.

Frosty said...

what's this luv for MT...Luxembourg...I doubt they are ammused down at druker's general store...USA USA USA

Bud said...

well well well...............got a private f'ng email from frosty "scared u from the bunker........sorry sal'



lemme tell u somethin bob............i walked over tougher guys than you on my way to a fight............you can't scare me from anythin........f'ng bitch

Bud said...

that's real funny ace


it's your pops that sleeps with an A-fraud poster....................my name is don f'ng corleone


"his hip ain't right'

Bud said...

i'm sure j edgar hoover would be very happy with the Bman.......frosty too for that matter



he was a f'ng queer!!!!!

Bud said...

atta boy Bman


buyin calls into the jobs number..............that sounds like speculation to me..........excessive too perhaps

i love it !!! let's play some ping-pong

mfl59 said...

"his hip aint right"

lmaoooooooooooooooooooooo

index card indeed.......

Bud said...

i have some family matters to attend to til next wednesday............i'll be on and off ..........alright douchebags

Bunkerman said...

MT is worldwide & has plenty of exposure to emerging markets.

US steel companies moslty don't

Frosty said...

"i walked over tougher guys than you on my way to a fight"...LMAOOO oh brother

Bunkerman said...

J Edgar had quite high standards for his G-men skills with the Tommy Gun.

Had to go up against plenty of tough gansters.

Bunkerman said...

MT can triple on a "Return to Normalcy"

bot some CX - an old Obama Fund stock.

This dip gets it close to where I sold it.

Good profit potential on the "RTN"

Spin-em said...

i have some family matters to attend to til next wednesday............i'll be on and off ..........


ROFLMAOOOOOOOOOOOOOOOOOOO

Liz phrases now..lmaooooooooo

yes ur very important...ohh maan

Spin-em said...

Budzo the clown.....SLMAOOO

Bunkerman said...

last Fed meeting the bears attacked. I wonder if they will tomorrow ?

mfl59 said...

by return to normalcy do you mean another debt bubble?

Bunkerman said...

started buying the SPY calls (Dec). I figure three more adds before to get to 300% long again.

Bud said...

Bman which calls ??

Bunkerman said...

ah mfl ... such a jester ...

btw, all those bks and defaults are wiping out lots of debt ...

Bunkerman said...

I'm going to ladder the SPY Dec, average in as I see the trigger points.

way too much time premium in the Nov.

Bunkerman said...

that is, premium per day.

Bunkerman said...

that India gold buy is very bullish - 1666 gold coming to a screen near you.

Frosty said...

indeed Bunky...hear Sal added to his Mr T starter kit.