What’s the rate of return on losing $8 billion?

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CNN Money has reported that Stanley O'Neal, who left Merrill Lynch as CEO today has left with a package of up to $160 million.

The company reported a loss of $8 billion last week on sub-prime mortgages.

O'Neal has made 2% of that to walk away.

I'm not sure what I find more offensive:

1. Lending to people who you know cannot repay;

2. Paying people small fortunes to decide to buy that debt;

3. Losing pensioner's money, because that was, at the end of the day, used to finance these deals - after all - most stock holding is now in mutual funds of some sort or other;

4. Paying $160 million to reward incompetence.

If you tell me you think this economy is sustainable I won't believe you. It isn't. Justice requires that it isn't. And justice tends to have its way, in the end.