But a lot do and those that work for banks that are TARP recipients may be facing a bonus deficit for the next few years, according to the WSJ. There was a flurry of showing activity the past two weeks as bonus checks for 2008 were handed out. If those lookers fear that they won’t see a similar check for a long time, our spring market may be still born. That will open up a lot of properties to other people, but I doubt sellers will be thrilled. Still, I think I agree with this law professor:
“I’ve been a big free-market guy, but with the free market you get what you deserve, and the foxes have been guarding the henhouse,” said Jonathan Macey, a law professor at Yale University. The way that bonuses were doled out was “corrupted” because it “morphed into an expectation” instead of a reward for performance, he said. “That’s not credible anymore.”
No, it’s not. We’re about to experience a paradigm shift; always an interesting thing to live through.