I am baffled as to how anyone ever considered George W. Bush to be conservative, at least on fiscal issues. Simply cutting taxes does not make one a fiscal conservative. The expansion of the federal government, increased spending, not using the veto on pork spending; all of these things are pretty damning to the image of Bush as a friend of free-market capitalism.

Well, last week he may have topped all of these things during a visit to Wall Street. Bush addressed business leaders at Federal Hall and said:

"the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders. America's corporate boardrooms must step up to their responsibilities. You need to pay attention to the executive compensation packages that you approve."

While Bush did say that he didn't think the government should be involved in determining corporate salaries, this rings hollow. He is the President of the United States afterall. And judging by the silence that his speech met by those in attendance, it rang hollow with business leaders as well.

Not that executive compensation isn't a business issue that needs addressing, but it is just that; a BUSINESS issue. Businesses should have the right to compensate their employees anyway they see fit. And there will certainly be consequences if they get it wrong.

Take a look at Home Depot for instance (I do own stock in Home Depot). They have been hammered in the press over the past few years for the outrageous compensation that Bob Nardelli received. And they were punished for it. Not by the government. By the market, which usually levels a much heavier penalty that government.