simple, you take public money you are subject to scrutiny and ridicule, as well as government regulations. what aig is doing is criminal, but hey, in a capitalistic society, payouts are the norm, no? what can you expect from the frauds and charlatans that got us in this mess? at least they are true to form.
i like this little gem from newsweek though...
Talk about misplaced anger. Wall Street built a wooden house, stuffed it with flammable material, set it on fire and then poured gasoline on the blaze. And now it's blaming the inferno on the arson inspector, who wasn't appointed until after the fire had reached three-alarm status?
Posted by anthony at March 16, 2009 08:34 AMThey've already crashed; let them burn. What's going to happen? What could the next ten years bring that would be worse than the last ten years; the last thirty or forty years? Total devastation is inevitable; let's get it over with.
Posted by NealB at March 16, 2009 08:44 AMSo AIG gave billions to foreign banks. AIG is the backstop for trillions in derivative notional debt. How much of this debt will have to be paid in real capital remains to be seen.
If AIG were allowed to collapse, pension funds, annuities, insurance payments, etc. would collapse as well. Perhaps a controlled collapse is the better option.
There is simply not enough growth in real net energy supply to support the perpetual growth paradigm any longer. The financial collapse is an indicator that a new economic system, one that can be sustained over time, is necessary.
Posted by brisa at March 16, 2009 08:57 AM"AIG was going to pay out $160 million in berated-by-Treasury bonuses"
The number is now 450,000,000.00 USD compliments of the US Taxpayer.
Posted by S Brennan at March 16, 2009 10:00 AMFrom TPM:
You're missing the point on AIGFP's bonuses. The reason the government has no bargaining power is that failure to pay the bonuses -- which, like it or not, AIG is contractually obligated to pay -- would constitute a "cross-default" under AIG's derivative contracts....which means that failure to pay the bonuses would allow AIG's counterparties to terminate the CDS contracts and demand a full payout from AIG. With a derivatives portfolio of over $1.5 trillion, this is no small deal.
While I certainly don't understand the minutia of these contraces, I was outraged, but the "we are contractually obligated to pay these bonuses" had me wondering the larger implications.
If True, the whole financial system is rigged even deeper than I thought. Pathetic.
All these Shrugged fucks, think that letting the market correct itself is just jolly. Yup, it will correct itself. Trouble is, who gets skewered in the correction? Certainly not the ones that caused the problems.
Posted by Simp at March 16, 2009 02:20 PMHey, I read that it's not $165 mil but more like $450 mil, most paid to overseas people that wouldn't care too much who's offended here. Oh, I see SB has that one already. Let's parse this just a little...AIG is getting its money from the FED not the taxpayer. That being said, its still foolish to commit this PR outrage and by someone our president had so much hope for.
The price of the earmarks dwarfs the value of AIG's bonuses, but the Obama administration told critics of earmarks that the budget was "last year's" business. The banking bailout -- or TARP -- was actually enacted last year, unlike the omnibus budget. As you witness the federal government condemn AIG, consider the source of the outrage.
Prior to his inauguration, President Obama met with Democrats in Congress and threatened to veto any bills that placed tougher restrictions upon the usage of TARP funds. Some Democrats, seeking greater oversight surrounding the distribution and use of TARP assistance, proposed measures that would govern the second distribution of $350 billion in federal funds for the program. Now, the White House worries that voter disenchantment with banks and bailouts will kill public support for the President's other initiatives.
parse this bedwettin petey...you're an asshole, now, yesterday, and tomorrow.....
Posted by headxray at March 16, 2009 09:06 PM