Questions To Ask About America and AIG
This is posting is prompted by watching the House hearings on AIG bonuses. It’s interesting that the cable news networks are covering this extensively. I guess they think America is pissed. Let’s step back and ask ourselves a few questions.
LAS VEGAS, NV (March 18, 2009) – As I watched this morning’s House hearings on AIG, a couple of questions went through my head.
First, since We the People own most of AIG why not act like a typical employer and just say, “We didn’t make money, so no bonuses. And if you want to sue us, go ahead.” Barney Frank hinted at this.
Second, on the flipside, do we really want to act like Putin’s Russia? In other words, we don’t like what a company is doing so we change all their contracts. There is a dangerous precedent there.
Third, if we’re criticising the Bush Administration for rushing into salvaging AIG without looking at the employment and bonuses contract, then why are we demanding immediate action from Treasury Secretary Geithner on the bank bailout?
I don’t have the answers. Tell me your thoughts.
Here’s my answer. This is exactly the danger of bailouts. Right here. This is why bailouts are wrong. Government does not know business, because there is no risk of failure when a government runs a company, and without failure, capitalism itself fails.
Stop the madness. Stop the bailouts. This AIG experience is a perfect example.
Second thought. This is a Shell Game. While the media and the feds have us focused on $160 million at AIG, the feds are shifting around a trillion dollars or so, right under our noses. That’s the way I see it!