Eric Dash blogging in the NY Times explains What’s Really Wrong With Wall Street Pay.
The easy observation that Wall Street compensation policies are unsustainably flawed does not at all support the current push for regulatorily controlled compensation.
Free markets, of course, feature a wonderfully elegant regulatory mechanism for dealing with firms unable to set interest-aligned and sustainable compensation policies: They go out of business. It is only in a regulatory-jungle system like ours, where the government dutifully insulates powerful firms from market discipline, that issues like this arise.
Time was when progressives could maintain the conceit that the idea of regulation was to protect the market from itself. As it stands, it is a barely disguised euphemism for command.
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