Looks like there may still be a few sane people out there even yet… but none of them are in Congress, apparently… As the stupidity mounts and the A.I.G. bonuses are held firmly front and center in the worlds view the larger issues of the entire fiasco conintue to get barely any press at all. [...]
Archive for March, 2009
Don’t say we didn’t say so… U.S. Plan Seeking Expanded Power in Seizing Firms so now the government is giving itself powers – but it would be better to give the people the power – auction the banks – keep the houses – Remember – in a fiat currency world only real assets matter – [...]
Kudos to the San Francisco Chronicle and Robert Sheer for getting it right – yes, the bonuses are one more sign of gross ineptitude and largese but the larger picture, is, well.. larger. As Sheer notes: “The bailout is a response to a banking crisis that resulted from the radical deregulation pushed by former Goldman [...]
So what’s the big Hoopla over 1% in bonuses? ONE PERCENT. That’s gotta be a new record in government frugality when it comes to wasting money as a general rule!
Let’s put it in perspective: AIG is estimated to get over 170BILLION from the government. Here’s the story from Philadelphia on the “in house” payments and bonuses AIG is spending:
“In addition, AIG is paying $121 million in previously scheduled corporate bonuses and hundreds of millions more in retention payments to more than 6,000 employees throughout the company’s global insurance units.” – The PhiladelphiaEnquirer
But their list of beneficiaries of teh rest of the funds is vague and without any detail:
“The funds were paid from the government’s initial $85 billion emergency loan in September and included major firms such as the Goldman Sachs Group Inc., Societe Generale, Deutsche Bank AG, Merrill Lynch & Co. Inc., Morgan Stanley, Bank of America Corp., and Barclays P.L.C.” – where are the numbers as so carefully noted in the employee pay off breakdowns? We don’t like paying ‘bad employees” – we’d much rather pay “bad banks”?!
Well, what no one seems to be talking about – (and why they talk when they do is another mystery – it’s like none of these people knew all of this at least six weeks ago! – Oh NO! It’s all NEWS to them! NOW! Yeah, right.
Anyway, as I was saying – the other 99 percent of the money… yeah. that.