Paul Krugman replies to Obama's bonus comments: "we're doomed"

I wish one of the HN rules were "no Paul Krugman". His writings are occasionally interesting, but he's a flamebait and it has no place here. This article marks two posts in two days.

This is silly. It's the shareholders paying the CEOs, not the government.

If the shareholders are happy with management (and they should be, as JPM and GS are the undisputed winners of the crisis), then why shouldn't they pay them competitively?

It's easy to argue that Blankfein and Dimon are adding much more incremental value than they take in compensation. So everybody is incented to pay them enough to keep them...