Executive Pay Caps are Bad

I was going to blog about this, but the Becker and Posner beat me to it.  Read their article.  But to summarize: 1) risk-taking is not inherently bad, so/and the issue was a national collective action problem rather than the maniacal greed of a few bankers, 2) pay-caps are not useful economic stimulus, 3) poor pay will just cause the worst banks to acquire even worse CEOs.  It's terrible all around, and the Obama administration should be ashamed to have proposed such a policy.