Executive compensation gone wild is nothing new, but it's worth looking at in the context of Freddie Mac, whose stock has tanked on a weak housing market and questions about the company's solvency. Rumors are swirling that the publicly traded quasi-semi-governmental agency will seek some kind of government bailout.

Fortune's Colin Barr examined the company's latest proxy statement and found some disturbing trends in management compensation: for 2007, CEO Richard Syron took home a $1.2 million salary, a $3.45 million cash bonus, and stock awards and misc. other of $10.6 million. That was up 24% from a year ago.

If Freddie decides to seek public funds, it will look laughably hypocritical. When it comes to CEO pay, this is a company that wants to operate like a private business but, when the going gets rough, it pulls the federal trump card. That's crap.

Think about it: any bailout will be indirectly supporting that eight-figure compensation. I think taxpayers deserve better than that and, before we contribute a penny or guarantee anything, Mr. Syron should take a large pay cut and invest his own money in any preferred/secondary offering the company pursues. Think that'll happen? One can dream ...

The Sam Zell-owned Tribune Co. is selling its prized baseball team, the Chicago Cubs, and opening bids are due today.

Reuters reports that 10 parties have been approved by Major League Baseball to make bids, and the team could fetch over $1 billion. Potential bidders include a group led by taxi tycoon Andew Murstein, including Hank Aaron and Jack Kemp, and the usual band of moguls. But if you want to see some passion restored to baseball, you have to be routing for internet billionaire Mark Cuban, the flamboyant owner of the Dallas Mavericks.

Cuban has the cash and he's the one guy who would probably be willing to commit the resources to make the company a champion for the first time since 1909.

Murstein's, who is vice chairman of Sports Properties Acquisition Corp. (AMEX: HMR) told Reuters that "We're not going to chase the deal. With us, it's not going to be an ego buy."

For disenchatned Cubs fans, a billionaire on an ego trip would be the best buyer.

Shares of Overstock.com (NASDAQ: OSTK) are down nearly 30% after the company reported second quarter earnings. Revenue rose 27 percent to $188.8 but the company reported yet another big money-losing quarter, with $6.5 million, or 28 cents per share, flying out the door.

One way to evaluate the candor of management is to look at the company's statements in its press release announcing news -- if the company says all kinds of wonderful things about how great everything, but the stock still goes down 30%, it means that you're dealing with people who put lipstick on a pig. Here are some examples of the self-congratulatory tone of the earnings release. "For the first time in its history your business has generated four consecutive quarters of positive EBITDA and TTM operating cash flows. . . Our financial condition is sound despite a weak economy."

There's no mention of what went wrong in the press release, but obviously most people were hugely disappointed with the quarter. One problem for Overstock is that the company's sales and marketing expense ballooned 79% to $14.2 million.

You'll be happy to know that chairman and CEO Patrick Byrne continues to spout nutty conspiracy theories and post on message boards, arguing with anyone who dares criticize him.

The Friends of Angelo Mozilo loan scandal widens, with Portfolio.com publishing a list of prominent people who received favorable loan terms from Countrywide Financial because they were friends of its chairman and CEO. Christopher Dodd has already been raked over the coals for the special deals he received, but there's more: former Fannie Mae CEOs James Johnson and Franklin Raines, former HUD director Henry Cisneros, CNN commentator Paul Begala, and many others. View the full list here, with 17 names and details on the terms.

It's tempting to level allegations of political corruption, and special terms given to executives at Fannie Mae and a judge who later heard a case involving Countrywide would seem to be obvious conflicts of interest. But as scandals go, this one seems pretty lame in that regard. The amounts involved just weren't that big: What's $15,000 when you're William Esrey, the former CEO of Sprint? It seems more likely that Angelo Mozilo, an incredibly vain man, wanted to be a "player" and hobnob with influential people. That he used shareholder assets to pursue his social agenda is distasteful but, unfortunately, not particularly rare. And given what a corporate governance outhouse Countrywide was, it certainly isn't surprising.

But in the current environment where Countrywide is being raked over the coals, mostly with good reason, this was destined to turn into a big mess. Read the Portfolio exposé here.

In a press release, the Securities and Exchange Commission announced that it had filed insider trading charges against Beaufort, South Carolina mayor William J. Rauch. The SEC alleges that he "purchased stock in Advanced Cell Technology, Inc. (OTC: ACTC), immediately after one of its executives informed him about a breakthrough embryonic stem cell technique that the company was about to disclose publicly. According to the SEC's complaint, Rauch was told the information was confidential, and he had previously signed an agreement with the company that barred him from using confidential company information for his own benefit."

He agreed to pay $20,708 in disgorgement, $2,576 in prejudgment interest, $20,708 in penalties, and promised not to do it again -- without admitting or denying guilt, of course.

But it gets worse. According to the SEC's complaint (PDF File):

In mid-2005, Rauch entered into a written Finder's Fee Agreement ("Agreement") with Advanced Cell. Under the Agreement, Rauch agreed to refer potential investors to Advanced Cell. In exchange for Rauch's services, Advanced Cell granted Rauch an option to buy 48,000 shares of Advanced Cell stock and promised him a referral fee equal to a percentage of any amounts raised.

Translation: The mayor of Beaufort, South Carolina, in addition to the fact that he just settled insider trading charges, was also a shill for a penny stock, telling people he knew to invest in the company while pocketing a "referral fee" from the company. Given that he apparently had few qualms about trading on insider information, it seems likely that he had no problem steering people into shares of Advanced Cell Technology without disclosing his massive conflict of interest.

The announcement of the embryonic stem cell technique sent shares of the stock up to $1.83. They closed yesterday at 2.5 cents. I recognize that the standards of ethics for elected officials are pretty low, but citizens of Beaufort should give this clown the boot.

With the real estate market in the toilet, most people would never dream of investing in property right now. "It's going down!" How do we know that? Because reputable sources like BusinessWeek tell us it is.

And then there are the people who have made fortunes in the industry, and they see it differently. In an interview with Portfolio, Related Companies founder, chairman, and CEO Stephen Ross explained his decision to make huge new investments in Manhattan real estate"

"Too many people believe that when things are bad, they don't know how they can get good and when they're good, they don't know how they can get bad."

Ross has ambitious plans for the next few years: a $3 billion mixed-use development in Los Angeles, a $3 billion Colorado ski resort, and a 144-acre development in Phoenix, one of the hardest hit real estate markets.

Maybe the naysayer journalists know something Ross doesn't, but I somehow doubt it: he's number 68 on the Forbes list.

The prestigious 2008 No Kidding! Award For Obviousness in Financial Journalism goes to the Associated Press for this headline: GM's recovery depends on winning over car buyers.

Ya don't say? And here I was thinking it depended on the Yen carry trade.

But in a way, that headline is a wonderfully succinct illustration of why the odds of a successful turnaround at General Motors (NYSE: GM) are basically zero. The company has a crippling debt load and a cost structure that isn't even close to being competitive with the infinitely leaner Asian automakers which, by the way, make cars that are more relevant.

GM brass are sounding an optimistic note on their upcoming car introductions, and maybe they will improve. But the company has a difficult task: slash costs while restoring the company's brand positions. Either of those would be difficult, and both at the same time is probably impossible. The company is at a competitive disadvantage that is simply massive, and its decline has gained additional momentum from the decline of its brand equity. If GM didn't already exist, people would laugh at the idea: "Let's have a huge debt load and a really high cost structure and sell cars that are almost as good as our foreign competitors."

When I think about it like that, it's hard to find a reason to even consider investing in the company's stock.

Lou Pearlman, the airplane entrepreneur turned boy band promoter turned modeling agency con-artist, has been ordered to repay $300 million to investors he bilked in a decade-long Ponzi scheme.

It's been a stunning downfall for Pearlman, who is now serving a 25-year prison sentence. He was the Svengali behind the Backstreet Boys and *NSYNC, but was later sued by both bands, and accused of inappropriate sexual conduct by several former band members, most notably Nick Carter.

Interesting trivia item: Mr. Pearlman is the first cousin of Art Garfunkel. Take a look at this funny video from Saturday Night Live, parodying Mr. Pearlman.

Myron Wentz, the founder and chairman of Usana Health Sciences (NASDAQ: USNA) has elected not to pursue his previously announced tender offer to acquire the company at $28 per share.

In a press release announcing the move, Wentz's group explained that "After further reviewing the results of the offer and receiving additional feedback from shareholders, it became clear that the purchaser would not receive tenders of a sufficient number of shares to satisfy the non-waivable condition to the offer that the purchaser own at least 90% of the outstanding shares following the completion of the offer."

A shareholder had asked a judge to enjoin Wentz from completing the offer on the grounds that it was too low and that Wentz had not provided shareholders with information necessary to determine the company's value. The judge granted a temporary injunction, but the termination of the offer concludes the matter.

The stock fell more than 12% to close at $24.43 today, and investors appear to be wary of Usana's prospects given all the questions about the company and its business mode raisedl by Barry Minkow's Fraud Discovery Institute.

I think anyone who has read the report that was dismissed -- but not rebutted in any meaningful way by Usana brass -- would have a tough time investing in this multi-level marketing seller of vitamins.

What would you do if you were fired from your job as a top advertising executive at Wal-Mart (NYSE: WMT) after a torrid love affair with a subordinate, and then read about the ensuing drama and steamy emails in The Wall Street Journal?

Head to reality television, of course! B-list reality shows have given disgraced former stars like Jose Canseco (The Surreal Life) another 15 minutes of fame, and Julie Roehm wants in on the act too: Fortune reports that Ms. Roehm will be a judge on Jingles, an upcoming CBS show where contestants compete to write jingles for TV commercials. I can't wait to see that one. What's next? Who Wants to be a Roadkill Collector? I'm going to go out on a limb and predict that Jingles will last one season.

She's still living in Bentonville because she hasn't been able to sell her house.

I give some props to Ms. Roehm for capitalizing on her fame, but I think she has to be careful about not marginalizing herself by morphing into a d-list celebrity on the strength of her relationship with a coworker. But she's also running her own marketing consulting firm, so maybe she's keeping it balanced.

President Bush has expressed willingness to use taxpayer resources to bolster Federal National Mortgage Association (NYSE: FNM) and Federal Home Loan Mortgage Corp. (NYSE: FRE), on the grounds that their collapse or inability to continue buying loans would have a catastrophic effect on the market.

He's right about that and, in this particular case, using taxpayer money to rescue these entities is the lesser of two evils.

But here's the problem: if shareholders are allowed to retain their stakes in the companies, then any bailout amounts to a transfer of wealth from taxpayers to people who happen to own those two stocks. That's really messed up.

The Federal Reserve set a terrible precedent when it helped finance a deal that put cash in the pockets of Bear Stearns shareholders, but now is the time to nip the moral hazard problem in the bud. The effect that problems at Fannie and Freddie would have on the broader economy can be averted without bailing out public shareholders who were aware, or should have been aware, that investments in equities contain risk.

While William Ackman's investment in Target (NYSE: TGT) has been a poor performer since he first disclosed a stake in July of 2007, he isn't backing down.

Bloomberg reports that Ackman has added at least $100 million to the $2 billion fund he established for the sole purpose of investing in shares of the Minneapolis-based big box retailer. The shares are down 38% in the last year but, according to Bloomberg, "The Target fund's loss may exceed the drop in the Minneapolis-based company's stock because it uses derivatives, which can amplify gains and losses."

Ackman has pushed for share buybacks, real estate sales, and the divestiture of the company's credit card operation. The company has said it will repurchase $10 billion in stock by the end of the year, and sold a 47% stale in its credit card business earlier this year.

The Chapter 13 bankruptcy trustee in Pittsburgh accused Countrywide Financial, the poster child for lending practices that were disastrous for both investors and consumers (but worked out quite well for Angelo Mozilo), of losing or destroying more than $500,000 in checks between December 2005 and April 2007, and then charging already downtrodden borrowers for illegitimate late fees and legal costs.

Countrywide recently settled those allegations, and will pay $325,000. That's it. Is that a deterrent? Now that Countrywide is owned by Bank of America (NYSE: BAC), it's barely a rounding error, and certainly not something that will discourage Countrywide or other lenders from ripping people off.

Crime might not pay, but apparently it doesn't cost much either. Given the continuing flow of hugely negative publicity for Countrywide, it's hard to imagine that Bank of America isn't rethinking its plan to keep the Countrywide brand. Why would someone go a company synonymous with foreclosures, bait and switch, and corporate greed when they want a home loan?

Life as a short seller isn't much fun these days, except for the whole getting rich part.

Rather than slapping them on the back for their prediction of trouble at many of the leading financial firms, regulators and pundits are lashing out at short-sellers, implying that their place on the moral spectrum lies somewhere between child molester and Al Qaeda operative.

And, sadly, the "naked short selling" conspiracy theories that have generally been spread only by the tinfoil hat crowd that Gary Weiss dubbed the baloney brigade are going mainstream.

Forbes writer Liz Moyer writes that "Many hedge fund managers deny naked shorting occurs, but a growing number of company executives, from bigger and bigger companies no less, have complained that short-sellers have used manipulation to drive their shares down."

Well that is kind of interesting. Why are bigger and bigger companies tossing the same allegations that used to be tossed by small, crappy, cash-bleeding corporate crybabies? Because bigger and bigger companies are operating more and more like small, crappy, cash-bleeding corporate crybabies every day! And when the cash is flowing out instead of in, scapegoats must be found.

Lehman Bros. (NYSE: LEH), the once-proud investment banking firm that's seen its stock tumble from $74 to under $13 in the past year, has a solution to its problems: bring back the investor relations person who was the company's mouthpiece back when investors didn't know about the huge unchecked risks Lehman was taking.

Shaun Butler had run investors relations for the company since it went public in 1994 before retiring at the beginning of February, according (subscription required) to The Wall Street Journal.

It's not a material change, and there's probably nothing much to be read into it. Lehman is reportedly not in desperate need of more cash (although they also said that about Bear Stearns) and is considering a share buyback to boost its stock price. The company appears to see its problems as more perception related than operational, and obviously believes that bringing back a familiar face and voice will ease investors' nerves.

MarketWatch has reported that the company is unlikely to be able to find a buyer because most banks have their own issues to deal with. So it looks like Lehman will have to win back the street on its own.