Tom Evslin has a fantastic post on his blog about why pay caps are a great idea and I completely agree.

A free market demands pay caps for those who have been insulated from failure. Should’ve been in the bank bailout billfrom the beginning (although there shouldn’t have been a bank bailout bill at all).

The counter-argument that talent will leave the bailed-out institutions is nonsense.

First, why would we assume that the people who head these institutions are talented at anything beyond maximizing executive pay?

Second, where is all this formerly expensive talent going to go?

It’s a cogent articulation of how I’ve been feeling about the situation and while you may not agree, it’s worth a read.