The Cashing In Disgrace

There is a terrible problem in this country when those individuals who worked for the government, whether in Congress, the Executive Branch or any Federal agency are allowed to immediately reap rewards from government service. Certainly, anyone is entitled to return to private life and earn a living but I personally think it is somewhat unseemly to take that government service and “cash-in” at such absurdly high speaking fees.

In Sunday's online Wall Street Journal, there was an article about former Fed Chairman Ben Bernanke at a speaking engagement in Abu Dhabi at the Emirate's Palace. It was coordinated by the National Bank of Abu Dhabi with the major sponsor, Citibank, hosting the function. He was paid a mere $250,000 dollars for his 40 minute speech. This is significantly more than the $199,000 he made in all of 2013.

That is a pretty good rate of return on investment Chairman Bernanke took in last week, wasn't it? He earned over $6,000 per minute to essentially justify to the

English: President Barack Obama confers with Federal Reserve Chairman Ben Bernanke following their meeting at the White House. (Photo credit: Wikipedia)

audience some of his questionable actions since the Great Recession began in 2008.

Too bad he won't be able to justify those actions to an American audience. Many families are still struggling to find jobs which can pay a living wage, making mortgage payments, putting food on the table and just trying to survive.

As a retired banker, at the time the Treasury and the Congress gave us that wonderful boondoggle called TARP, I said that it was a mistake to give the money directly to the Banks. Over $125 billion was given to the nine largest banks in one fell swoop, which were deemed "Too Big to Fail". While most of the money has been repaid, the money was used to bail out AIG, GM, CHRYSLER and other companies not included in the original approved legislation.

In essence, just about ONE TRILLION DOLLARS was authorized, but not all of it can be completely accounted for.  Can Mr. Bernanke explain that to the American people? Frankly, I doubt it.

Subsequently, this voodoo game of Quantitative Easing, when you soberly look at the results, has kept interest rates artificially low, which has fired up the stock market. This is going to explode much like the housing market did six years ago, once the QE Program comes to an end. When it does, it will crash and burn dropping 5,000 points or more in short order.

What will Chairman Bernanke say to the American people when their retirement savings in 401-k's, 403-b, TDA's and other investments vanish into thin air? “Sorry, you didn’t need that, did you?” Will that soothe our condition? I don't think so and I don't think he does either.

That's okay because Ben Bernanke at least will be solvent. If he gives just three more speeches this year and gets paid like he did in Abu Dhabi, he will have made a million dollars, 5 years worth of his salary in less than three speaking hours. Not too shabby, huh?

He isn't the only one though, just the most recent. I believe that if one takes a high profile government job, that person must sign an agreement that he/she cannot "cash-in" for two years after he/she leaves that post. That includes a President, Vice President, any senior or middle cabinet officer, executive branch supervisor of any agency, Representative, Senator, Supreme Court Justice or other high level officer of the United States. Did I miss anyone?

What do you think?