The Difference Between AIG and GM

16 03 2009

GM and the UAW were forced to renegotiate contracts, but AIG is bound by the letter of the law to pay bonuses to the geniuses who got us in this mess.  To quote Jon Stewart…”FUCK YOU!”

Washington and the nation are enraged that AIG is paying millions in bonuses to retain financial wizards that sold insurance on mortgage backed securities with few assets to back up their promises.

AIG is telling us that it must pay those bonuses, because they are required by employment contracts necessary to retain its financial engineers.

Treasury Secretary Geithner has expressed outrage. Instead, he should be embarrassed.

When the Bush White House agreed to bail out General Motors and Chrysler, it required those companies to renegotiate their labor contracts—that’s right contracts—and they are doing just that to keep their federal largess.

The Obama Treasury, headed by Tim Geithner, is forcing the terms of that deal on the United Autoworkers.

Why did Secretaries Paulson and Geithner not require the same at AIG? Remember Geithner was president of the New York Federal Reserve Bank and a key player when financial giants like Citigroup and AIG were being bailed with the taxpayers’ cash. Those bailouts continue, with easy terms for the bankers and their contracts, on Geithner’s watch.

The threat was the same with AIG and GM. If either shut down, the economy would plummet into chaos and depression we were told.

So Mr. Geithner, instead of being outraged at AIG’s last revelations, perhaps you can explain to all of us why a UAW worker earning $29 dollars an hour must give back wages and benefits to keep their company alive, while the architects of the biggest financial disaster in history get to keep their gold plated contracts.

Mr. Geithner, we are waiting for your answer.

The all new Gitmo weight room is the only bonus AIG executives deserve

The all new Gitmo weight room is the only bonus AIG executives deserve

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Companies “Too Big To Fail” Should Be Illegal

25 11 2008

In this, the land of eternally capitalistic motivations, companies have learned that to be dominant, or at least competitive, it’s better to be big. Big gives you economies of scale. Big means you’ve bought up your competitors and, by default, now command more market share. Big apparently also means that you are unnaturally immune to the detrimental aspects of taking extreme risks or incompetent management.

Yes, today the new corporate nirvana is reached when your company has been deemed to be too big to fail (TBTF).

Looking at the current economy and the behemoth players flailing for rescue I understand the mutual benefit that necessitates saving them. We as a country cannot function without their continued existence. I get it. I understand we are backed into a corner on this and that we (and of course by “we” I mean our government) must save these companies from their own excessive greed and criminal negligence.

However, if a company has been deemed “too big to fail” and we are required to rescue it I would like to suggest the application of one of two mandates.

  1. Any TBTF company receiving government bailout money must be divided into two or more smaller economically non-critical corporations.
  2. If it is not feasible to divide the TBTF company then it is apparent that the company in question has grown so large that it can no longer assume ultimate responsibility for its own actions. Since that responsibility by default falls onto the shoulders of the American public such a super critical company must, by necessity, become a part of the federal government.

These sort of sanctions would solve the TBTF problem but would also serve to act as a deterrent to companies (*cough* auto industry *cough*) from looking for free handouts just because the government looks like it’s in a giving mood.  Additionally all government regulatory bodies that review corporate mergers (like the FDIC, FCC, FTC, SEC, etc.) be required to consider future deals with the TBTF test in mind.

Maintaining healthy competition among equals would go a long way towards strengthening our economy and would inspire new innovations. It would also encourage companies that feel they are above the laws of capitalism to rethink the risks they assume knowing now that if they fail their company will be divided or absorbed into the federal government.

What do you think? Do you have a better idea?





Chicken Little Or Nostradamus?

25 11 2008

Peter Schiff made numerous appearances on Fox news and it’s astonishing to watch his spot on analysis so glibly dismissed by the conservative cheerleaders.  I don’t suppose Fox will go back and highlight how right he was and how wrong their people were.  Seriously, this is pretty amazing to watch.

PS: Ben Stein, you’re a pompus self important ass pustule.





Banks Allocate 86% ($108B) Of Bailout Towards Compensation And Bonuses!

9 11 2008

Amazingly my ongoing outrage at the Republican party has been outdone by my new found rage towards the heads of the banking industry.  I just read a letter the honorable Henry Waxman sent to the CEO of Wells Fargo where he chastises him and eight other banks for putting $108 billion of the currently allocated $125 billion tax payer bailout dollars towards compensation and bonuses.

This is so reprehensible as to defy credulity.  If there were calls for regulation and oversight before I think it is clear that there should now be calls for the seizure of all personal assets, arrests, and imprisonment for these cowards and honorless thieves.

All of Al Qaeda’s attempts to wound this country combined pale in comparison to the damage the US has suffered at the hands of these craven traitors.  I would stop short of the death penalty only because I want these tender pampered racketeers to spend the rest of their lives in Guantanamo getting the best Dick Cheney has to offer because they are domestic terrorists of the highest order and deserve no less.

(hat tip to Driftglass for the initial point to the Waxman letter)





One Other Thing

7 11 2008

You know my last post where the republicans are finally fessing up to what an incompetent douche’ Sarah Palin really is?  Yeah, well we liberals have a little confession to make too.

Sorry about that, but it really feels good to come clean like that.  I suppose we’re even now, right?  Right?





GOP Innoculating Themselves Against “Palin 2012”

7 11 2008

Conservatives are peering into the smoking crater left behind by the McCain campaign and they don’t like what they see.  It is obvious to all now that a large part of McCain’s failure was due to the staggeringly short sighted and cynical selection of Sarah Palin.  The conservative power brokers are cognizant that any influence she might try to wield in the future would only serve to create more catastrophic disasters across the Republican national landscape.   This is a terrifyingly confident and ignorant monster of their own creation and they simply cannot risk the possibility it might someday wreak more havoc.

So if you think the liberal media was hard on Sarah you haven’t seen anything yet.  The  conservative propaganda machine is a wrathful beast and is not at all squeamish about eating one of its own.  Sarah Palin is about to be turned upon by the same charlatans who buttressed her high pedestal just three days ago, and the carnage should be so terrible as to transfix anyone who might accidentally gaze upon it.

That is to say, get your popcorn.





This About Sums It Up

5 11 2008

At least the good guys won this time.