Let me start with my disclaimer: I did not agree to bail out AIG. I have always thought that this company needed to be chopped up into smaller companies a long time ago.
- The fact is that they did get bail out money.
- The fact is that these bonuses were not performance bonuses, they were retention bonuses.The are not bonuses based on performance. They are actually a salary type bonus that was created by the Congress back in 1993. If you don't know or understand how and what retention bonuses are you have no right to judge whether they are right or wrong. These people are not paid like people working for a typical salary. In these situations they get paid a super small salary from $1 a year to $50,000 a year and then the retention bonus is paid at the end of their year according to a contract, like contract labor agreement in a way. They had contracts. Contracts are protected by our constitution. This was to prevent the government from interfering with contracts.
- The fact is these bonuses were approved by the same congress that was demonizing the people who got the bonuses. Chris Dodd wrote this part of the bill.
- The fact is that the Congress was demonizing the AIG employees because it was the 'popular' thing to do.
- The fact is that they begged Liddy to come out of retirement and practically begged him to save AIG for a ONE DOLLAR A YEAR SALARY.
- The fact is that the retention bonuses were put in to the STIMULUS package that NO ONE read before voting on. Do you remember that one? The one that was such an emergency to get signed because if they took the time to even read what they were signing than the world might come to an end?
Now, the Congress and the Administration created this mess and now they are crying foul. If they can get all the people to yell and scream about these bonuses then we would not be paying attention to what is really going on in Congress. Well, it worked!
While everyone is acting like some angry mob and even sending death threats to these bonus recipients, they are dangerously creating a situation where our constitution will get stepped on.
Let me show you what is going by unnoticed while we are worried about 160 Million in bonuses:
- The Fed announced it will pump a $1 trillion into the system by buying debt from our treasury.
- The price of gold shot up about 75 dollars in 18 hours. ( Investors are not stupid)
- The very AIG that the government is encouraging you to get mad it is the government's own money laundering machine.This is why there is no way the government was going to let AIG fail. They funnel money through AIG so we don't notice!
So while the public gets to find out about 160 million in legal and approved retention bonuses the government is taking our tax dollars ( because we own 80% of AIG) and done this with it:
- Funneled $44 BILLION dollars through AIG and given that money to American Banks that are already getting government bail out money including,Fannie Mae and Bank of America. Tax payer money.
- Gave $58 BILLION dollars through AIG to Foreign banks! Does that not create more outrage than some bonuses? Tax payer money.
How about some break downs of those countries:
- $15 Billion to our friends in UK
- $17 Billion to Germany
- $19 Billion to FRANCE!
Now why does our country have to give this money to foreign banks? Because we are under contract to do so and we don't break the contracts. But yet they are yelling in congress to break the contract AIG has in place with the employees at AIG who are trying to unravel the credit scam mess that they created.
Hmmm, now the Congress is going to approve a 95% tax on that money which is totally unconstitutional to appease the American people.
What they did not tell you is that the legal expenses that the taxpayers will incur because this legislation is a violation of the constitution is going to be much more than $160 million dollars. No court is going to side with the Congress on this one. Of course, by the time this comes to that, our minds will be shifted to whatever 'other' crisis they deem our attention to.
If I was Liddy I would have placed that dollar on the table in front of Congress and told them to stick it where the sun don't shine and QUIT right then and there. They had NO right to treat him in the manner in which they treated him.
If I was those employees I would give the money back, tell congress to jump in a lake and QUIT!
There is NO one in our government that can fix the credit department at AIG. Only the private sector can fix this and there are only a small segment of people with the experience and knowledge to know how to fix this department and it certainly ain't no government bureaucrat. And the private sector is not going to work on this issue without getting paid.
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AIG Is Just A Smokescreen! A Diversion Technique! Don't Be Fooled! by Katerina Gasset is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.