AIG; Man, am I spoiled; and really, really good news

I had hoped to have a witty and thought provoking piece put together on the AIG bonus dust up, but I’ve not sat down with my computer for a while. Maybe tonight?

In the meantime here are my concerns:

1) If Congress can change the rules and tax these bonuses at 90%, can’t they come in and arbitrarily change the rules on me?

2) Is Congress interfering with private sector contracts in a way that could set a dangerous precedent?

Yes, I know people are mad. Guess what? All these bonuses existed when Congress voted the AIG saving move. They simply didn’t bother to look past their own navels last September. However, this is unique, as the government now owns about an 80% equity stake. And that’s where I think any changes could (and should!) be made to the corporate structure. Manhandle the company like a Warren Buffet shareholder, not like a lazy government driving with an eye to the rearview mirror.

Food is hit or miss around here, but so far mostly a miss. I was really looking forward to mouthwatering selections. Instead I think I’ve stumbled into a city of hype. There’s no reason a good meal can’t be had for $15 – $20 an entree. I suppose I’m spoiled from cooking so much. If I don’t find decent food soon, I’ll definitely have to knock of few points off Charleston.

Word came by e-mail today that one of our readers has received an all clear after her cancer treatments. Today is a day for celebration in our little blog community. What wonderful news.

Comments

  1. Wilson828 says:

    No they won’t change the rules for you on bonuses.

    The govt (us) owns AIG and because we gave them money we think we can tell them what to do .. and they sorta kinda gotta do it.

    Lots of it is political showmanship right now.. and pissing and moaning …

    But they won’t do anything to those private companies who have bonus programs – that’s unamerican .. it sorta goes against capitalism… and they’d be such outrage on more income taxing.

    AIG is fair game .. they’re the scapegoat for the recession … oh they’ll sell off the piece that hurt them and their well structured profit making insurance division will go on .. but it’ll be like ATT .. they’ll skinny up and move on but not without a lot of fanfare.

    It’s healthy to have a common enemy and scapegoat…. makes us all come together ….. (kumbayha … sing together now… kumbayha…)

  2. Those are valid concerns. Sacrificing the rule of law for any purpose is dangerous.

    Dealing with a country where laws are not laws is maddening. A friend went to court seeking to reclaim real estate that had been fraudulently sold and divided. The judge chastised her for not having an armed guard on her fenced property, and yelled, “Where have you been? This is not the United States!”

  3. J. Strupp says:

    “Manhandle the company like a Warren Buffet shareholder, not like a lazy government driving with an eye to the rearview mirror.”

    I agree with this statement. My hope is that the government will use this approach when dealing with some of the banks we now “own” as well instead of letting them continue to operate as private entities.

  4. Thank you, Cindy!! 🙂 Celebrate His grace and power!!

  5. Blessings for continued health!

  6. To Wilson @ 1

    “But they won’t do anything to those private companies who have bonus programs – that’s unamerican .. it sorta goes against capitalism… and they’d be such outrage on more income taxing.”

    Right Dubua, I agree that it is pretty un-American. They didn’t demand contract concessions from union auto workers in Michigan, they aren’t freezing wages on state employees in Wisconsin either (sarcasm, in case it went over your head). And as families struggle with job loss and worse, (many times these are fine folks who followed the rules, paid their bills and worked hard) our patriotic insurance companies, for the last three or four years have been increasing policy premiums for these fine folks if/when their credit score drops. And the insurance company while pinging your credit score, can actually cause your score to drop. Conflict of interest, maybe?

    “The govt (us) owns AIG and because we gave them money we think we can tell them what to do .. and they sorta kinda gotta do it.”

    We did not have the authority to jump in on AIG because they are not a bank. I think the legislation to change that rule passed yesterday or today. I’ll post the link if I find it. In the meantime, read my other link to Spitzer’s article in Slate from March 17.