I am amazed at the huge pay of commodity traders and others at AIG and similar companies. They justify the pay on the basis of profits and the risks they supposedly take. That is perhaps understandable. BUt they seem to get the rewards, but put the risks on someone else. So, I can't help but wonder if the profits are justified, and if they in fact are not just a tax on the economic system. In other words, what useful function do the traders perform that would not happen if the profits were lower? Apparently there is not much competition in that line of work. Given the profits, it seems likely that there is some restriction that prevents effective competition. Maybe all of the players collude to keep profits artificially high. In this regard, Jake DeSantis has resigned as executive Vice-President of AIG with this letter that discusses compensation. DeSantis seems to doubt that the high level of the traders pay is justified. I tend to agree with him that they should get the compensation promised to them for staying on after AIG crashed through no fault of theirs.

Some blogs are saying that DeSantis is pulling a "John Galt." It could be. My guess is that he will accept a position with another firm and continue to work. I'm not aware of any place someone dropping out of sight as John Galt did could go. Colorado is not remote enough these days. Maybe some island in the Pacific. Perhaps somewhere in New Zealand.