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Fox Financial Guy Shoots Down His Own Capitalist Pig Argument

Reported by Melanie - September 24, 2007 -

The strike at General Motors was the topic of one of the segments on Your World w/Neil Cavuto today (September 24, 3007). The issue was discussed in a roundtable format, with Jonathan Hoenig, of CapitalistPig Asset Management being one of the participants. Sure enough, he spoke like a true capitalist pig.

Hoenig:

What's amazing to me is some of the unions grievances. I mean, the union has a grievance of the fact that some of the CEO's are making millions of dollars. I'm sorry but the CEO's are worth millions of dollars, many more than the folks on the line, you know, putting the cars together.

Cavuto:

I guess their argument is, they don't mind CEO's getting a lot of money if they're doing a lot of good. Isn't the argument that over the years these guys have not done a lotta good?

Hoenig:

Well, I think CEO's, Neil, have done as good as they can given the union regulations, the union hampering that they've been under since the 1950's.

Comments: Seconds before this interaction, Hoenig held up a chart of GM's stock performance, presumably dating back to the l980's, and he said: "The stock is where it was 30 years ago." It's clear to me that the folks running the "big three" car companies have their heads up their collective butts as they have for decades. But that aside, any Wall Street-type will tell you that if a stock is at the same price today that it was at 30 years ago, whoever's running the company is doing a terrible job. Hoenig ought to listen to his capitalist pig self more often -- he shot down his own argument.