Big Banks Create Crisis, Nobody Gets Punished

If you want to get your blood boiling, you can read this Bloomberg article about how the big banks, which created the financial crisis, have gotten away with trivial fines while none of their executives risk any jail time. Instead, bank executives wind up getting millions in golden parachutes when they leave the company, even though their mere existence can’t definitely prove that they created value for the company.

For example, Bank of America’s executive, Kenneth Lewis, will receive pension benefits of $53 million, according to the New York Times, as well as $81 million in stock. Here’s the big question. Did Kenneth Lewis create value for Bank of America that at least equaled $53 million as well as the $81 million in stock options? If Bank of America can’t specifically point to how Kenneth Lewis created at least $81 million, why reward him for that same amount? In other words, if Kenneth Lewis didn’t create at least $81 million dollars for Bank of America, the company is losing money by giving him such a rich reward for his retirement.

You can get mad all you want about these golden parachutes, or you can do something about them. That means not relying on companies to fairly distribute profits to its workers. If you really want to break out of the rut called a job, you need to start a business of your own either part-time or full-time. Most people start businesses part-time and then if it becomes successful, they go full-time.

What stops many people from starting even a part-time business is that they’ll have to take extra time to do so. After working in a job you can’t stand, the last thing you might want to do is work on a business so pick something you enjoy. That way you’ll be playing with your hobby instead of forcing yourself to do something else that’s just as mind-numbing.

While you can start any business, the best ones to start involve low start-up costs and minimal hassle. Although not everyone may want to do this, the ideal business would be selling information products over the Internet, such as selling e-books, video courses, or software. This eliminates the need for retail space, inventory, delivery costs, and manufacturing.

Whatever you decide, it’s clear that you can’t rely on corporations to treat anyone fairly but their own top executives who, like Congressmen, have the power to vote themselves massive pay raises for no reason other than they can. It’s time to break away and become financially independent, so get started now so future stories of yet another executive getting a multi-million dollar payout won’t bother you so much any more.

March 30th, 2014 by
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