In Response to Talks of Pay Caps

Over at Ry's Blog, a copy of a post by a hedge fund manager ("Austrian") on Arfcom:

I currently manage a medium sized hedge fund (long/short equity).
The current populist uproar is absolute insanity. I don’t know how else to say it. You are never going to legislate away greed. Period. It is part of the human psyche. That’s all there is to it. You can either fight it, or use it. Incentives work. This is why.

Let’s step back a minute and think about why and how this happened:

Read the whole thing.

Make no mistake, if the current mania for capping the executive pay becomes law, the US is going to see a brain drain the likes of which we have never seen.  It will doom us to becoming a socialist hell hole for generations.