BUT YOU FIRST

Who loves the International Monetary Fund?

That's really not meant to be a question, but here's the answer. The only people who love the IMF are fools, naves and poseurs.

One of their recent gems is buried in this quote.

Banks should consider paying bonuses in the form of debt and giving their creditors a greater voice in boardrooms in an effort to keep risk taking under control. 

One of this international collection of geniuses recent suggestions is what they called "a better mix of incentives" for banking executives, "including long-term illiquid bank debt as part of top employees' compensation, potentially with a long vesting period."

How long is long? If the word never comes to mind, give yourself an A-plus.  Executive bankers might want to respond with an: "OK. But you first."

Once upon a time capital equipment could be depreciated over five years. But that, according our illustrious elected officials, turned out to be too good a deal for those who purchase capital equipment and not so good a deal for government.

So our elected officials in their bottomless ignorance changed it. You could call it, if you want, a longer vesting period or less liquid.  Illiquid might also work.

A friend use to say life is a terminal illness. Markets are about risk taking. Take out the risk and they aren't markets anymore.

But you must hand to the IMF. God bless their generous little bureaucratic hearts.
t. man hatter