Monday, March 16, 2009

AIG, UGH

By now everyone's heard that AIG, recipient of billions in the bailout, is paying millions in bonuses to the very department that caused its financial collapse. They're arguing that they legally have to pay them because of contracts made before their collapse... and they're arguing again that without paying these sorts of bonuses, they won't be able to retain the best.

Looks like there's little the rest of us can do but vent on this one. Even the Obama administration's hands seem tied by deals made by the Bush administration on this one. My predictable thoughts--apparently the "best and brightest" didn't do so hot these last years. I bet there are plenty of equally smart people looking for a job who'd be more than happy to take their jobs without the bonus. Frankly, I like teaching and writing, but give me two months in a room with the appropriate resources...

Of course many unlikely thoughts come to mind. Liquidate this "credit default swap" department and send all these bonus unworthy fools packing. Fire anyone who takes the bonus, etc...

7 comments:

Mark Schnell said...

Sounds like Gordon Gekko is alive and well in the world of big business!

Angie Van De Merwe said...

Big business is being underwritten by government in this case, with the taxpayer holding the bills. Government's bail-out and partial ownership breeds conflict of interests and it would be hard to understand how this would not lead to neopotism, or croynism...all legally done, of course.

Obama is a rhetoritician, but I think the rhetoric sounds hollow when taxpayer's are holding the bill for the big bail-out and he touts cutting a million dollars, here and there. I heard there was some demonstrations going on about the stimulus bill. Possibly this is why he is appearing on Jay Leno, as this is where he thinks he will "meet" "joe the plumber" and he will then be able to give pablum to those who don't know better. I hope I am wrong, but I think we are all being duped for tht government's sake. And remember government is composed of beauracrats. Government cannot get under control when it grows so big and has so much power. And the individuals suffer under such governemnts.

Craig Moore said...

Didn't Geithner have alot to do with putting these bailouts together. I am sure you are still putting your faith in big government to spend us back to prosperity.

Ken Schenck said...

How soon we forget that it was the Bush administration that arranged the AIG bailout and set the initial terms for it. And I know it must goad you that Obama's approval ratings remain as high as ever. Interestingly, I hear only questioning of the Obama administration in the media across the board. The American people don't seem to be listening.

Craig Moore said...

Dude, you are wrong as usual about this issue. No, I am not goaded, Obama is doing exactly as I knew he would. Bankrupting the nation and borowing (printing) money to artifically stimulate the economy will not work and as I said you will see massive inflation, stagnation, high unemployment and economic chaos. Watch Obama's ratings go steadily down as the economy continues to tank as the Porkulus bill fails and all the other incredible spending drags us toward economic disaster.

Ken, you better stick to your theological reflecting because you seem to not know diddly squat about government and finance. Of course maybe you are a committed socialist, it is one or the other.

Craig Moore said...

Check out Chris Dodd and his role in this scam.

Ken Schenck said...

Saw about Chris Dodd, so can't give Bush the final blame for this one, you're right. On the consequences of Obama's economic plan, you may be right, but you may not be. I'll hold off the verdit on that one for a few years.

But frankly, I can't see that you've shown yourself to have greater economic and political wisdom than me in any of our banter here these years. If anything, just about everything I've said has been vindicated over time, including my predictions of who the nominations would be from Iowa on and who would be elected.