Bingo for Bailout Nation Boy

Barry Ritholtz speaks the truth:

I find it amazing that at this late stage of the bailouts, how so few people — still — see the full picture. A perfect example of that is the focus (even obsession) on compensation. This is focusing on the symptom of an unhealthy6 corporate system, and not the underlying disease.

The true problem underlying the comp issue is corporate governance, and the way the Boards of Directors fail to represent the interests of shareholders. The way they systemically engage in the worst form of crony capitalism, transferring wealth from shareholders they are charged with representing to the senior management they are cronies with.

Democracy does not scale.  Not for a 300 million person country, and not for a $300 billion dollar company.