AIG, UAW, TARP: The Taxpayer Drowns in Alphabet Soup
Clearly, the bailout of AIG was a mistake. Not because they paid out contractual bonuses when the taxpayers owned 80% of the company, but because no company is too big to fail.
AIG should have filed Chapter 11 bankruptcy and then the light of day could have exposed the problems. If that had happened, today we would already be six months down the road to reorganization.
Yesterday, everyone from President Obama to Senator McConnell to the convenience store clerk was outraged about the company bonuses paid out. I understand the sentiment, but it is emotion — or “irrational exuberance” — that got us into this mess. We need solid free market business practices to get out. The new CEO of AIG, Edward Liddy, is working without a salary. When Secretary Geithner asked him about the bonuses, he said there was no way to get around them without violating contractual agreements. In theory that would stand, but I would very much like to know whether Liddy even tried to renegotiate the amounts paid out.
When Liddy, the retired Allstate CEO, was tapped to steer AIG from the edge of insolvency, the markets loved him. He had vast experience, including experience when it comes to successful restructuring of major companies. When Liddy was appointed, the Chicago Tribune reported, “The government’s pick hadn’t been made official as of late Wednesday, but one major AIG customer applauded the expected move, saying Liddy will help foster confidence in a company teetering on the edge of collapse.” There is something fundamentally wrong with that — the idea of “the government pick” to head a large corporation.
Can anyone explain why the administration is hell bent on breaking the AIG contracts but never once considered breaking the contracts that the unions had with the automakers? Hmmm….
All of these mentally challenged bailouts are proving to be one fat joke on America only nobody is laughing.
I’m really amazed at all you people who think you know how to fix every problem we face in this world. Granted AIG shouldn’t of paid any bonuses since they didn’t make a profit, but we’re talking greedy people here. There should of been some kind of stipulation on the money in the first place that it couldn’t happen. The auto workers are a hard working group of people who are fighting to survive. I don’t believe you ever saw a car or truck come down in price, even though alot of the vehicles are made with substandard parts and the workers who make them are paid nothing to speak of in wages. They’re not made in American anymore, just assembled here. We’ve lost thousands of jobs because of outsourcing yet you blame us for all the problems. How about all the foreign companies who send most of their profits back to their countries and pay little if any taxes. How about the foreign workers who come to our country and run most of the hotels and motels who pay little or no taxes, then go back and a relative takes their place. I don’t belive the congress or senate offered to give up their benefits or big salaries to help out. Put the blame on the greedy corporate and potitical people who’ll sell you down the river for a buck.
My take- Obama’s “outrage” is staged. Obama & crew knew about the bonus contracts when giving away our tax dollars, and didn’t give a damn. They knew this could be used in their class warfare strategy.
If they can illegitimatize contracts between private sector employers and employees, and stop the bonuses, they will be hailed as heroes by the brain dead Obamabots; idiots who won’t see the danger with government interfering with private contracts.
If they can’t stop the bonuses, they will use this to rail against the evil capitalist system that needs to be replaced with the equitable and just Obama-nation.
More distractions, as the Obama enemies list and dirty tricks grows.
Cynical yes; but given Obama’s background, seems entirely plausible.
First mortgage contracts now employment contracts are under attack. Contract law is the foundation of the business world – that’s why this administration hates it so.
The bonuses are just the tip of the iceberg, which provide an effective “flare up” point. What I’d like to see is that the subject now being opened–it could be broadened to find out where the BILLIONS (not millions for bonuses) that AIG sent to overseas banks went.
Where did it go? How do we get THAT back?
If the Congressional goofballs get by with acting like the bonuses are the main problem and that they will have it “fixed” by (once again) threatening some private citizens, then this is pathetic.
Why does the Congress keep on getting by with (1) supposedly taking responsibility, (2) devising “solutions”, (3) ramming them down our throats, and then, (4) acting like they were just poor little innocent bystanders all the time and acting all insulted when the wheels start coming off??????????
We need to focus more on the big picture and not let them just make this about the bonuses. As Rush pointed out today, the amount of money involved in these bonuses is less than 1/10 of 1% of the total money received by AIG.
There are enough ignorant fools in the American populace that they can keep playing us all for fools unless something changes. And that includes Republicans. I’m so disgusted with the whole mess I could spit.
Charles Schumer is (once again, that handy word) shameless. Same goes for Chris Dodd. And I can hardly BELIEVE that Grassley was DUMB ENOUGH to use the suicide comment as a way to “show his anger”. These people need to seriously GROW UP, over the long haul, and not just try to “pass for grown up” during election season.
We’re sunk if something doesn’t dramatically change.
Maybe as others have dreamed of in their posts, barry soetero will resign. Wouldn’t that be a dream come true.
1. AThinkingPerson….EXCELLENT point and question.
Save us NobleBama, save us — from you!
Our esteemed pols used to “Tax and Spend”; now they “Spend and Tax”. Ah, the “Change” put into action by Team Obama.
Glen Beck’s take on AIG is pretty interesting. His theory is that AIG is a huge money laundering scheme. He had a bunch of numbers and charts to prove his point. I was 100 times more outraged at the amount of our taxpayer dollars that have been funneled to European banks than I was at the bonuses paid. Paltry sums in comparison. Obama wants us sheep to focus on the bonuses because the real truth about AIG would make our collective heads explode. This is insane and it has to stop. When is the nightmare going to end and will we have a country left when he is done raping and pillaging it ? I am beginning to lose sleep over this and am in a constant state of unease and low level agitation over our country all the time. Who the hell is this guy and who sent him ?
TAKE BACK ALL THE MONEY AND ARREST ALL THE EXECUTIVES. LEAVE THEM IN THE MIDDLE OF DEATH VALLEY AND REPAY THE AMERICAN PEOPLE.
10. Noreen. YES!
10. noreen,
I adore G. Beck and missed his show today. Drats! Anyway, try taking Melatonin or L-tryptophan [Sp?] to get to sleep. I’ve been taking the latter and sleeping like a baby [even with a toothache]. My hubby has been working so hard I’m kind of worried about his health because of the stress and intense physical labor.
to be emotional about the bonuses was to take the bait there is a much bigger muti faceted picture. it is a neo-socialistic coup and they have the bit in their teeth and are on a mission big time. this is for real and the end time results are real. Jesus said for as a snare shall it come upon all them that dwell on the face of the whole earth. lk.21:35 to me this is it.
Our government is corrupt to the core. When Chris Dodd wrote the authorization bill for the 2nd installment of $350 billion he added an ammendment that specifically allowed these bonuses to be paid. From Fox Business news ” The provision, now called “the Dodd Amendment” by the Obama Administration 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.”
This came shortly after Obama threatened to use his first veto on a disapproval resolution that sought tighter controls on the spending of TARP monies. Also, it may just be a coincidence but Chris Dodd and Obama were the recipients of largest campaign donations by AIG.
It is obvious that it is our government that is out of control. The time for a new revolution has arrived.
Funny, Sen Dodd the number 1 recipient of AIG campaign contributions ($103,100)….and then Sen. Barack Obama the number 2 recipient ($101,332)…hmmmmm. Oh and just to be fair…. Sen. John McCain #3 ($59,499) and Sen. Clinton at #4 ($35,965). Corruption is total in Washington D.C..
What a charade. From the Fed to the Congress to the Senate. We, as Americans should watch for bailouts and there being even one more, we need to vote out all those who vote in favor of bailing out ANYONE… PERIOD,. Wake up America, when a guy goes to Washington and stays, he makes financial connections and that is why Chris Dodd exempted the bonuses for AIG. These people have to go before they get swallowed up in the corruption and the lust for money to run campaigns.
The government should just allow the American people not to pay taxes for awhile. This would make us feel better. We have been cheated so demand the money back from AIG and use it to run the country. Give the American people a tax break because the AIG bonus dollars are basically gone unless they are forced at gunpoint to give it back.
Why have we allowed this to happen? this is technically a government by the peope, for the people. we make the rules, at least we are suppose to. We need to demand our money back from the corrupt corporations that have literally failed. And the government needs to start passing out checks to the American people,
If they can hand out Billions of dollars to failed organizations. why can’t they simply cut the american tax payers a check? there are a little more than 250 million people in this country. why not just cut each american tax payer $1 or 2 milliion? thats a fraction of what they are giving these failed corporations and if we got the money the economy would effectively be stimulated becaue everyone would pay their bills, payoff things and spend the money.
its what this whole stimulus thing is suppose to be about? Are the people in Congress that damn stupid?
19. Too Mad::
its what this whole stimulus thing is suppose to be about? Are the people in Congress that damn stupid?
~
-”Stupid” or downright evil and self-serving?
That was a bit of a rhetorical question.
I’d LOVE to be cut a nice fat check and get some of our hard EARNED money back from Big Bro but that’s just never going to happen, darlin’. The ‘fat cats’ are fat for a reason…
The catbird seat seat is indeed sweet.
“Alphabet Soup.” Boy, has a ring to it? But where could I have heard that before???? Hmmmmm…. I’m thinking it has to do with another massive government expansion period in our history. Hmmmmm…….And I seem to recall that it was a Democrat prez then too. Hmmmm……
We are two months into this administration and I am completely nauseated.
Can I qualify for full time `Political Disability` payments ?
Go Sarah…….
Well done. Your egotistical need to be
in the lime light and be the “self
appointed” protector of the TARP has
doomed AIG’s future and over 182.5
Billion that the government invested
in AIG’s recovery. So do the math, you
plan to recover about what..80
million. But AIG goes down the tubes
and the American people lose 181.7
Billion….nice job!! Why you
ask?.those resignations. You think
people that know that business grow on
trees?? There is a reason they were
getting those bonuses. So nice job
recovering 80 million of 182.5
Billion. And what Legal right did you
have? None. None at all. These people
feared for their lives. Isn’t that
blackmail, extortion or some other
crime? Trust me they committed no
crime. But you did buy threatening to
make their names public to the angry
mob that you created. So Mr. Attorney
General, you owe the American Tax
Payers 181.7 billion?..we’ll take that in
large bills please.
Dear Mr. Attorney General Andrew Cuomo,
Well done. Your egotistical need to be
in the lime light and be the “self
appointed” protector of the TARP has
doomed AIG’s future and over 182.5
Billion that the government invested
in AIG’s recovery. So do the math, you
plan to recover about what..80
million. But AIG goes down the tubes
and the American people lose 181.7
Billion….nice job!! Why you
ask?.those resignations. You think
people that know that business grow on
trees?? There is a reason they were
getting those bonuses. So nice job
recovering 80 million of 182.5
Billion. And what Legal right did you
have? None. None at all. These people
feared for their lives. Isn’t that
blackmail, extortion or some other
crime? Trust me they committed no
crime. But you did by threatening to
make their names public to the angry
mob that you created. So Mr. Attorney
General, you owe the American Tax
Payers 181.7 billion?..we’ll take that in
large bills please.