American workers are being laid off, taking time off and/or pay cuts just to keep businesses and governmental offices open. Schools may be moving to a four day week. Not everyone seems to be feeling the pinch however. Some are actually getting bonuses.
Last fall we were told that if we didn’t give AIG 180 billion dollars life as we know it would cease to exist. The money was given with too few strings attached and now some of the people responsible for AIG’s failure are receiving big bonuses for being either idiots or criminals. How can AIG have the nerve to honor bonuses for bad work when the American public now owns 80% of their company? What are they thinking and how much longer will be reward stupidity? I don’t approve of mob mentality, but it seems that we've created a Frankinstein monster and feels like it’s time to get the torches and pitchforks.
7 comments:
I think your anger is a tad bit misdirected. I'm not defending AIG, but the government gave them the money with few strings attached. The result should not have surprised you. The same people that drove them into the hole are still in charge and doing the things that drove them into the hole. Whose fault is that?
We just spent a trillion or so on a stimulus package that has little or no chance to do much of anything and the Congress turned around and passed almost half a trillion in omnibus funding that contained billions in earmark pork.
Our anger should be directed at this Congress for their total disregard for the taxpayer.
Yeah, I'm upset at the AIG debacle, but it pales in comparison to what this President and Congress are doing to the American taxpayer.
VW
Regardless of how either of us feels about Obama's stimulus package, VW, you have to allow that AIG didn't happen on his watch. Exactly who handed over that money with no oversight? Now we learn that of the 73 employees at AIG receiving million dollar bonuses 11 aren't even there any longer and are still getting paid for poor work by us. We need to stop paying for incompetence.
I think Bush is responsible for 40 billion of AIG, Obama and company gave them the rest. Either way, it was stupid to give them the money in the first place and even more stupid to hand it over without any strings.
The bonuses, it turns out, were contractual which means the company was obligated. Had we allowed capitalism to work and let them go under, the contracts would have been voided and they would all mostly be looking for a job now instead of cashing a big check.
Again, your anger ver the abuse of 140 million seems a bit over the top when this Congress is pissing away Billions upon Billions.
VW
If you mean the root cause, well, there is a lot of blame to go around for both sides. However, a few years back when the Republicans wanted to rein in Fannie and Freddie, the Democrats did everything in their power to thwart the effort. Guys like Franklin Raines (The head of Fannie Mae at the time) made millions in bonuses while presiding over the demise.
Either way, we find ourselves in a mess. The way out of the mess is not to hand out billions upon billions of dollars that we have to borrow from the Chinese to bail out these people. The bill will come due some day and we will be in even more trouble. I fear for my Grandchildren. They will be saddled with a tax bill they will have no hope of paying.
I've been against the Republicans and their profligate spending and I'm now railing against the Democrats for taking it to the extreme.
VW
Hmmmm....It seems that the bonuses are compliments of Democratic Senator Chris Dodd.
http://www.foxbusiness.com/story/markets/industries/finance/dodd-cracks-aig---time/
While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009” -- which exempts the very AIG bonuses Dodd and others are now seeking to tax.
Thanks Senator! Now you are stuck undoing your crap. Talk about incompetence!
VW
All of AIG’s contract should have become void when the Federal Government became an 80% partner. Somebody really dropped the ball. There’s been too little oversight from the jump and as you say, VW, everyone is responsible for that. The blood letting needs to stop now.
I believe that the financial institutions and businesses which are responsible for our current situation should be allowed to fail and that more than Madoff should go to jail, forfit their illgotten gains to repay those they’ve damaged financially. For the businesses, if they can’t/won’t build a superior product, oh well. The billions being spent on TARP and the stimulus package ought to go to the American people who are in a better position to impact the economy by spending it. Gift cards for every man, woman and child so they can’t just bank the $. How’s that sound, VW?
Well, I just posted a youtube about who is actually at fault.
As for your suggestion - It would probably be better than what they are doing now. That would be a better boost to the economy than what they are spending it on now.
VW
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