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The recession started and continued by CEOs September 2, 2010

Posted by fetzthechemist in Uncategorized.
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http://www.cbsnews.com/8301-503983_162-20015340-503983.html

A study shows what workers have known for the past twenty years. CEOs and the executive boards of companies cut jobs to ensure their huge bonuses. With executive bonuses becoming so large, not just in the millions of dollars each but in the tens of millions of dollars each for every year, CEOs think short term. The easiest short term solution is to save money by cutting jobs. The end result is millions of jobs for those billions of CEO dollars (think of it another way, too, in that for every million paid out in bonuses, there have to be about 10 more lost jobs on top of the cuts in order to balance the payouts.)

CEOs who only cared about the short-term bottomlines started this recession with investments and financial practices that ended up being based on nothing more than phantom monies – loans with balloon payments or escalating rates or growth in only the buying and selling of loans, houses, whatever.

Now CEOs have cut jobs to “help” their companies in the recession. They also are not hiring again that there are signs of recovery – low head counts make the bottomline look better.

The one sign of economic recovery that has gained little notice is an upswing in mergers and acquisitions. More money in the company coffers is not spend on traditional expansion and growth, it is spent on buying out rivals. This leads to more layoffs and higher unemployment. The CEOs do not care. It makes their bottomlines look great, ensuring those bonuses.

Why hasn’t CEO become a reprehensible title. These people are greedy, self-centerred, narrow-minded, and uncreative sheep only doing what Business Week articles tell them to do.

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