I agree with the New York Times, especially this point:
“So as unpalatable as it seems, taxpayers need to keep some of these brainiacs in their seats,”
Because the bottom line is that these guys are just that, brainiacs. Amidst all the derision that the financial industry is facing, people seem to forget that the financial industry did do a lot of work. The models, the theories, the ideas, i think have not yet been found wanting. Only a collective sense of judgement and caution. Nothing’s wrong
So. these brainiacs need to get paid. Earlier they got paid to take huge risks and make proportionately large profits. Now they need to be paid to do it again.
Cheers to Marginal Revolution for the link.