Comments on: A show trial for AIG? http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Anubis http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-11497 Sun, 29 Mar 2009 21:16:29 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-11497 First AIG is to big to fail. The economic fallout we were told would be a disaster. Now we are told AIG has to be shut down for the same reason. The Secretary of the Treasury asked Congress to give him that very authority. Congress is likely to comply. It is clear no one in government knows what they’re doing. Or at least they are giving that impression. What is more disturbing is the steady usurpation of Congress’ Power to the Fed and the Executive branch. The parallels to Ancient Rome and her Senate are haunting.

Where is Cicero now?

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By: Chris http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10842 Wed, 25 Mar 2009 16:54:05 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10842 Maybe we should take some lessons from the Russians. I’ll bet there are some parts of Alaska that resemble Siberia. AIG fatcats playing with money should be its first settlers. The list shouldn’t stop there, that is just the tip of the iceberg. Lets start with all the other hedge fund managers of other companies bailed out that are getting bonus money thanks to tax payers floating their corrupt businesses.
The whole for profit system at any cost with the assumption that resources are unlimited and any of its continued proponents could also use a frozen vacation.
In short, AIG is lucky they live in a “civilized” country and people are for the most part uncoordinated and disillusioned enough that the public has yet to take action on it’s own.

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By: Russell http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10827 Wed, 25 Mar 2009 14:35:10 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10827 Letter from an AIG Executive. Stand in the shoes of those who are being attacked…

http://www.iht.com/articles/2009/03/25/o pinion/eddesantis.php

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By: Don http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10722 Tue, 24 Mar 2009 20:38:21 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10722 I was under the mistaken impression that the government already has the ability to shut down companies like AIG. A lot of people think that taking an active role in regulating these companies is something that occurs in Communist countries. In fact in Communist countries there are very strong ties between leading companies and members of the ruling administration. So to me we already have a bunch of Commies trying to siphon out cash from the general public. If Geithner would take control of the situation by force, I think that would be a refreshing change of pace. Because right now I don’t know who is cleaning whose shoes, who is on a doggie chain and who is taking responsibility. The oil is only being warmed up. The question is who will boil in it. Does Geithner really want to be read in some history book decades from now as the person who sucked up and messed up rather than help real people through one of the biggest crises in U.S. history.

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By: DCX2 http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10667 Tue, 24 Mar 2009 16:23:42 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10667 The author writes that “This [retroactively taxing bonuses] could make America resemble Russia, where trumped-up charges are used to prosecute companies that fall out of favor with the ruling elite.”

This is disingenuous at best. These companies did not “fall out of favor with the ruling elite.” They have secured absurd and potentially unenforceable contracts because they are well-connected politically. They knew that 2008 would be bleak so they locked in bonuses at the 2007 levels! This was a conscious, deliberate, and selfish act designed to screw their fellow humans.

It is about time that those people feared the public. That fear makes them think twice before doing something foolish. Clearly, some big companies can certainly use such motivation.

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By: rbsr http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10554 Mon, 23 Mar 2009 02:37:51 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10554 Diana

EXCELLENT POINT.

That round-trip of tax dollars is heinous and true.

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By: rbsjr http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10553 Mon, 23 Mar 2009 02:35:30 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10553 Benny

Actually, the lenders did not have to be wiser (and for the life of me I don’t remember any public outrage over the mortgages-for-all policies in place at the time, do you?). They sold their loans to investors (including other banks, foreign countries, insurance companies, investment funds, pension plans etc etc) and thus lenders did not hold any risk on any loans. The investors bought the repackaged loans by the boatload and thus they hold all of the risk of non-repayment by borrowers, though some of them insured this risk with credit default swaps written up by insurers (for example, AIG). So now that the borrowers are defaulting, the risk is now a reality and these investors (and the applicable insureres) are becoming insolvent.

What the regulators (and politicians that empower them) would have had to have done was to have made it harder for folks to borrow money for houses – for example, by imposing all of the common-sense rules to house purchasing that applies in nearly all cases and can be read in any simple article on the matter: 20% down, at least 6 months living expenses in safe cash deposit, no more than 30% of income to housing costs, buy a house only for long-term living, etc. Do you think any of the voting public would have gone along with that regime? If not, then who is to blame?

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By: Peter Vaz http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10511 Sun, 22 Mar 2009 08:51:19 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10511 History speaks of USA- throwing away dollars for perspiration but never begs for it back.The current fiasco with the AIG is a laughing matter.Why is Mr.Obama in depression supporting Mr.Timothy G.? Is Mr.Geithner the sole person available in USA? If the treasure secretary accepts his fault then why Mr.Obama interested in keeping him? Is there any cooking in progress or cocktail parties ongoing at the White House backyards? Truth will reveal to us in few days.The USA public was first mislead of 165 million dollars and now the price tag increases for which AIG is not to be blamed at all.

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By: Diana Furchtgott-Roth http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10489 Sat, 21 Mar 2009 19:11:29 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10489 What’s amazing is that everyone is outraged about the bonuses AIG and other TARP recipients are paying, but not at the donations to politicians that these companies are giving. If it’s not right for TARP recipients to give out bonuses, it’s also not right for them to give out campaign contributions to politicians. But you don’t see members of Congress complaining about the contributions or passing laws to give them back. These companies spend more than $114 million taxpayer dollars on contributions and lobbying, according to The Hill (http://thehill.com/leading-the-news/tar p-firms-spent-more-than-114m-on-2008-lob bying-2009-02-05.html.

Diana

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By: John http://blogs.reuters.com/great-debate/2009/03/19/a-show-trial-for-aig/#comment-10484 Sat, 21 Mar 2009 16:54:35 +0000 http://blogs.reuters.com/great-debate/?p=2536#comment-10484 I don’t know what everyone is griping about with these bonuses. I for one will derive alot of warmth and comfort as I curl up in my newly acquired cardboard box
(very low mortgage rate!) knowing that, just maybe, some of these executives will be able to hold on to their third or fourth vacation home thanks to taxpayer generosity.

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