America, you’ve come a long way baby

 

From Charles Krauthammer’s article Bonfire of the Trivialities.

A $14 trillion economy hangs by a thread composed of (a) a comically cynical, pitchfork-wielding Congress, (b) a hopelessly understaffed, stumbling Obama administration, and (c) $165 million.

That's $165 million in bonus money handed out to AIG debt manipulators who may be the only ones who know how to defuse the bomb they themselves built. Now, in the scheme of things, $165 million is a rounding error. It amounts to less than 1/18,500 of the $3.1 trillion federal budget. It's less than one-tenth of 1 percent of the bailout money given to AIG alone. If Bill Gates were to pay these AIG bonuses every year for the next 100 years, he'd still be left with more than half his personal fortune.

For this we are going to poison the well for any further financial rescues, face the prospect of letting AIG go under (which would make the Lehman Brothers collapse look trivial) and risk a run on the entire world financial system?

Even worse are the clever schemes being cooked up in Congress to retrieve the money by means of some retroactive confiscatory tax. The common law is pretty clear about the impermissibility of ex post facto legislation and bills of attainder. They also happen to be specifically prohibited by the Constitution. We're going to overturn that for $165 million?

Posted under: Politics
Posted on: Monday, March 23, 2009 6:20 AM
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Comments

  1. Posted by: Pankaj on 3/25/2009 3:40 AM
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    "risk a run on the entire world financial system?"

    risk a run? Excuse me, but runs are what keep banks honest. More the better. Instead, the current faith(in govt honesty) based banking system, wants to resist a doubt on them. I say let it all fail, won't affect me, and those that it will - can buy cheap houses to help with their pain.
  2. Posted by: Mith on 3/25/2009 3:59 AM
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    Honestly, I have no idea what to go for.

    I am somewhat appalled at the bonuses that these executives are getting from a bailout for a hole they created in the first place, but at the same time, pissing them off isn't any better.

    Honestly, this is Congresses's fault for being idiots and for AIG being complete and utter assholes. As what to do about it? Let them keep it. People will remember this.
  3. Posted by: ArgusEyes on 3/25/2009 8:26 AM
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    What to go for?

    That depends upon what you want. If you want America to be a land of laws then don't go with the tax. If you want America to break it's constitution, act tyrannically, be reactionary and think with it's emotions and mob spirit then go with the tax.

    I re-iterate. The money for AIG is 1/10 of 1% of the complete bonus money given to AIG for contractual bonuses which were agreed anyway. And now the people are leaving.. Well done lads.
  4. Posted by: Mith on 4/2/2009 6:20 AM
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    Well, I admit, that the government breaking its morals and supported belief is not something that I approve of, but I'm not sure if they will stand with their beliefs. In this time of economical depression, they will be more than eager to try and satisfy the public outcry for blood.

    On the other hand, it is also an understandable reaction. These people fucked us over. They screwed everyone and now people see them getting rewarded. People want justice, because now their money is going to rewarding people who could have very well of cost them their homes, cars, and much more.

    But in the end, it was Congress's fault for not putting limits to what they could do with the money, such as bonuses. It was sloppy work and AIG itself should have known better. The people recieving the bonuses should have known better. Really? Millions for everyone? That failed so horribly? Have they no shame?

    I like to refer to this as a clusterfuck.

    But you are correct, this will only make things worse, although one could hardly expect the public to respond as they do. Most of them don't understand that this will make it worse in their rage and some won't care. Well, let's hope my government grows a bit of a spine.

    But I think the phrase of the day is this; They should have known better.

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The umbrella in particular is remembered as the symbol of the nineteenth century’s disturbing obsession with individualism. In Bellamy’s utopia, umbrellas have been replaced with retractable canopies so that everyone is protected from the rain equally.
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